Vinay Rajani of HDFC Securities recommends buying these stocks on August 7

Market View and Stock Picks

Nifty gave up early gains on Aug 06 to end in the negative. In the process it formed a pattern known as Bearish side by side black candle. This could mean continuation of the downtrend though with lesser speed. Nifty could head towards 23667 on breach of the support of 23894, while 24383 could offer resistance on the upside in the near term.

Buy Cartrade Tech (Rs 893.40) | Target Rs 968 | Stop-loss Rs 860

Stock price has started forming higher tops and higher bottoms on the daily chart. Stock is placed above all important moving average, which indicates bullish trend on all time frames. Indicators and oscillators have been showing strength on the daily and weekly chart.

Sell ICICI Bank Aug Fut (Rs 1,162.55): | Targets Rs 1095 | Stop-loss Rs 1,219

Stock price has closed below important support of 50 days EMA. Stock price has formed bearish head and shoulder pattern on the daily chart. Indicators and oscillators like MACD and RSI have turned bearish on the daily chart.

(Vinay Rajani, CMT is a senior technical and derivative analyst at HDFC securities. Views expressed are his own.)