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Nifty outlook and technical calls by Nandish Shah, Senior Technical & Derivatives Analyst at HDFC Securities
After rising for five consecutive days, Nifty witnessed profit booking yesterday to shut the shop with the losses of 39 points to close at 10923 levels. Though Nifty witnessed minor profit booking yesterday, It has been maintaining the bullish setup of higher tops and higher bottoms. Nifty is still placed above its 20, 50, 100 and 200 Days EMA. The symmetrical tringle breakout which got confirmed on 15th Jan 2019 is well intact, which projects the upside target of 11100 level for Nifty. However, longs should be protected with stoploss of 10800 levels on closing basis where puts have been written in the derivative segment.
Buy Dr. Reddy's Laboratories
Target: Rs 2,760
Stop Loss: Rs 2,570
Stock price has broken out on the daily chart yesterday with jump in volumes by closing above the crucial resistance level of 2622 level. Dr Reddy's closes at highest level since 11 December. Oscillators and momentum Indicators like RSI and MACD is showing strength in the stock. Stock price is trading above its 20, 50 200 day SMA Indicating bullish trend for the short to medium term. Considering the technical evidences discussed above, we recommend buying the stock between 2640 and 2600 for the target of 2760, keeping stop loss at 2570 on closing basis.
Buy DABUR
Target: Rs 457
Stop Loss: Rs 417
After forming multiple bottoms around 417 odd levels, stock price reversed northward yesterday to close above its 5 and 20 day SMA on the daily chart. Oscillators and momentum Indicators like RSI and MACD turned bullish on the daily and weekly charts. Dabur has already fallen 12% from the August 2018 high and Technical Indicators are indicating pull back rally from here. Considering the technical evidences discussed above, we recommend buying the stock at CMP and Average it at 425, for the target of 457, Keeping a stop loss at 417 on closing basis.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.
