Here's why HDFC Securities recommends buying VRL Logistics, Natco Pharma

Logistics stocks have been showing strength on the medium term charts, according to Vinay Rajani of HDFC Securities.

Nifty rose for the third consecutive session to settle at 18,055. From the bottom of 16,410 registered on 20th Dec 2021, the index has risen more than 10 per cent. It has been holding its level above short to medium term moving averages, which indicates bullish trend on all time frame. Support for the Nifty is seen at 17,944 and 17,655, while resistance for the same is seen at 18,210 and 18,604. 

Stock recommendations:

Buy VRL Logistics (Rs 495) | Target: Rs 550 | Stop-loss: Rs 462

The stock has broken out from the bullish “Flag” pattern on the weekly