Here's why HDFC Securities is bullish on HCL Tech, Dr Reddy's Labs

By hitting a day's high at 16,936, Nifty partially filled the downward gap which was formed between 16,966 and 16,840 on Monday. The Nifty ended the session with ''Doji'' candlestick pattern, which indicates indecision in the trend for the short term. Nifty should be held long with the stoploss of 16,650. Resistance is seen at 16,936 followed by 17,200.

Stock Recommendations:

Buy HCL TECH (1210) | Target: Rs 1,290 | Stop-loss: Rs 1,145

The stock has broken out from the consolidation, which held for the last three weeks. It has broken out from the downward sloping trend line with jump in volumes on daily charts. Indicators and oscillators have turned bullish on daily and weekly charts. It has been forming higher tops and higher bottoms on weekly charts. 

Buy DR REDDY(4623) | Target: Rs 4,885 | Stop-loss: Rs 4,462

The stock price has formed triple bottom bullish reversal pattern on the daily chart at 4,450 odd levels. It has exited the oversold zone on the short term charts. The pharma index seems to have bottomed out on the short term charts. Indicators and oscillators have started rising on the daily charts. Its price has surpassed short term resistance of 20 days EMA.

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Disclaimer: Vinay Rajani, Technical Research Analyst, HDFC securities. Views expressed are personal.