Breakout seen on Infosys, GNFC daily charts, Vinay Rajani recommends buying

The technical analyst from HDFC Securities also recommends to remain long on the Nifty and BankNifty with a stop at 17,325 and 36,525, respectively.

On 21st September 2021, Nifty and BankNifty recovered sharply from the day’s low and closed on a strong note. Nifty took support on its 13-day EMA and reversed north. BankNifty has formed “Long legged Doji” candlestick pattern on the daily chart, which is having bullish implications. Traders are advised to remain long in Nifty and BankNifty with the stop-loss of 17,325 and 36,525 resepctively. 

Buy Infosys Rs 1717  |  Target Rs 1,790  |  Stop-loss Rs 1,670

Stock has broken out from the symmetrical triangle pattern on the daily charts. Primary trend of the stock has been bullish with higher tops and higher bottoms. IT as a sector has been continuously performing very well for last many months. Indicators and oscillators have also been showing strength on daily and weekly charts.

Buy GNFC Rs 381.50   |  Target Rs 424   |  Stop-loss Rs 350

Downward sloping channel breakout is seen on the daily charts. Price breakout is accompanied by jump in volumes. Stock has been holding levels above its medium to long term moving average. Inverted head and shoulder breakout is seen on the daily charts. Indicators and oscillators have turned bullish on daily and weekly charts. Short term moving averages are trading above medium to long term moving averages.

(Vinay Rajani, Technical Research Analyst, HDFC securities. Views expressed are personal)