Trading guide, Jan 14: Check key Nifty levels to watch; two stocks to buy

According to Vinay Rajani of HDFC Securities, the stock price of Oil India is trading above all key moving averages, indicating an uptrend across all time frames

Nifty View

After a brief pullback session, Nifty resumed its downward trajectory, falling 57 points to close at 25,732. The index opened 107 points higher, briefly touching its 50 DEMA resistance at 25,891 before reversing sharply. Bears dominated most of the session, driving Nifty to a low of 25,603, though a late recovery of over 150 points in the final 45 minutes capped the downside.

 

For bullish reversal confirmation, Nifty must sustain a move above its 50 DEMA near 25,900 and 20 DEMA near 26,000. On the downside, the recent swing low at 25,473 offers short-term support.

Buy Oil India  (CMP ₹449)| Stop loss ₹435 |Share price target ₹475

The Oil India stock price has broken out from the downward sloping trend line resistance on the weekly chart. The primary trend of the stock is bullish with higher tops and higher bottoms. The stock price has risen with the jump in volumes on the daily charts. The stock is placed above all key moving averages, indicating an uptrend on all time frames.

 

Buy Unionbank (CMP ₹166) |Stop loss ₹161 |Share price target ₹174

The Unionbank stock price has broken out from a bullish inverted head and shoulder pattern on the weekly chart. The primary trend of the stock has been bullish with higher tops and higher bottoms on the weekly charts. Stock is placed above all key moving averages, indicating an uptrend on all time frames. Daily RSI is sustaining above 50, indicating a sustained uptrend for the underlying.   

Disclaimer: This article is by Vinay Rajani, senior technical and derivative analyst, HDFC Securities. Views expressed are his own.