Business Standard
Web Exclusive

Breakout from 17,500-18,100 zone to give direction to Nifty: Vinay Rajani

Among individual stocks, the technical analyst from HDFC Securities recommends to buy Cochin Shipyard and PSP Projects.

Market trends | Nifty Outlook | Stocks to buy

Vinay Rajani  |  Mumbai 

NSE, Nifty, markets
Photo: Bloomberg

Nifty View

From the day's high of 17,919, the Nifty witnessed profit booking and fell more than 130 points towards 17,780.

The short-term support for the Nifty is seen at 17,500-odd levels, which happens to be 34-day EMA. Resistance for Nifty is seen at 18,100-odd level. For the last 6 weeks, the Nifty has been in tight consolidation zone. Breakout from 17,500-18,100 range would give directional move in the Nifty.


Cochin Shipyard

Buy Range: Rs 418.5 - Rs 405

Targets: Rs 450; Rs 478

Stop Loss: Rs 400

The stock price has broken out from the downward sloping trend line on the monthly charts. The stock price has also surpassed double-top resistance of Rs 410 with rising volumes.

The defense sector has been outperforming for last couple of months. Further, the stock is placed above all important moving averages, indicating bullish trend on all time frames. Indicators and Oscillators like RSI and MACD have been showing strength in the current uptrend.


PSP Projects

Buy Range: Rs 641 - Rs 615

Target: Rs 700

Stop Loss: Rs 610

The stock has broken out from the “Flag” pattern on the weekly chart. The price breakout is accompanied with jump in volumes and the stock has also broken out from the consolidation, which held for previous 3weeks.

Further, the stock is placed above its 20-, 50-, 100- and 200-DMAs, which indicates bullish trend on all time frames. Indicators and Oscillators like DMI and MACD have been showing strength in the current uptrend.

(Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC securities. Views expressed are personal).

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, September 21 2022. 08:11 IST