Brigade Enterprise, RCF are the top trading picks of Vinay Rajani

The technical analyst from HDFC Securities expects the Nifty to rally towards 17,794 on a breakout above 17,500-level.

The Nifty continued to consolidate in the narrow range for the 8th session on the trot. However, the NSE index has managed to close at the highest point of the current upswing.  In last half an hour, Nifty broke out from the entire day's range of 17,235-17,322. Indicators and oscillators have been improving day by day and it is expected that Nifty would soon surpass the crucial resistance of 17,500. 

Above 17,500, the Nifty could move towards next resistance of 17,794. Recent swing low of 17,000 is expected to act as a support and same can be kept as a stoploss in Nifty trading longs.

Brigade Enterprise - BUY

Target: Rs 574

Stoploss: Rs 490 (Last close Rs 519.20)

On 17th March 2022, the stock price broke out from the narrow consolidation which it held for the last 5 months. The price breakout was accompanied with jump in volume. The stock remained resilient when the overall market was passing through a bearish trend. 

From the entire realty sector, technical setup of Brigade Enterprise looks the strongest. The stock is placed above all important moving averages. The stock has been correcting in the last few sessions, which can be considered as throwback to the breakout levels. Technical setup for the Nifty Realty Index is also bullish on the short to medium term charts.

RCF  - BUY

Target: Rs 99

Stoploss: Rs 87 (Last Close Rs 91.7)

The stock has broken out from the symmetrical triangle on the weekly chart with significant jump in volume. The stock is placed above all important moving averages, indicating bullish trend on all time frames. Indicators like RSI, MACD and DMI have turned bullish on the weekly charts. The stock has broken out from the long term consolidation and the current uptrend is likely to sustain for long term. Fertilizer sector has been outperforming for the last couple of weeks.

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