Tech picks: JK Lakshmi, Castrol can rally up to 20%, says HDFC Securities

On the broader market outlook, Vinay Rajani technical & derivative analyst of HDFC Securities says the Nifty has broken out from a consolidation phase and can rally towards 22,600-22,700.

Nifty View

The Nifty ended higher for the sixth straight session. Nifty has registered fresh all time high of 22,215 and has also closed above 22,200 mark for the first time.

The Nifty seems to have broken out from the consolidation which was there for last 7 consecutive weeks. Nifty has also broken out from the bullish cup and handle formation on the daily chart, which indicates continuation of an uptrend.

The level of 21,800 becomes the strong support for the Nifty, while band of 22,600-22,700 could act as a resistance for the short term.

BUY

JK Lakshmi Cement

Last close: Rs 944.50

Target: Rs 1,120

Stop-loss: Rs 880

The stock price has broken out from the consolidation which held in last three weeks. Price breakout is accompanied with jump in volumes. 50-DEMA has been acting as a bullish reversal point for the stock for mast many weeks.

The primary trend of the stock is bullish with higher tops and higher bottoms on the

weekly charts. Cement Stocks have been outperforming for last couple of months.

BUY

Castrol India

Last close: Rs 207.50

Target: Rs 250

Stop-loss: Rs 198

The stock price has shown resilient move against the recent correction of the benchmark indices. Stock has been consolidating in the narrow range for last 5 trading sessions.

The primary trend of the stock has been bullish with higher tops and higher bottoms on the weekly chart. Stock price is placed above all important moving averages, indicating bullish trend on all time frames.

(Vinay Rajani, CMT, Senior Technical & Derivative Analyst, HDFC Securities. Views expressed are personal).