Here's why Vinay Rajani of HDFC Securities is bullish on MphasiS, Sobha

The technical analyst sees Nifty support moving higher to 15,400, and resistances for the NSE benchmark at 15,750, 15,883 and 16,150.

Nifty View

After forming two consecutive “Doji” candlestick pattern on the daily Charts, the Nifty bounced back sharply on June 21. The support for the Nifty has now shifted up to 15,400. Resistances for the Nifty are seen at 15,750, 15,883 and 16,150.

Mphasis

BUY

Targets: Rs 2,450, Rs 2,550

Stop Loss: Rs 2,160

Last Close: Rs 2,285

The stock price has formed a bullish “Morning Star” candlestick pattern on the Daily chart. The RSI oscillator has been rising with positive divergence on the daily chart. Further, the IT Index has started outperforming. The stock can be accumulated between CMP and Rs 2,200, for targets of Rs 2,450 and Rs 2,550, keeping a stop loss at Rs 2,160.

Sobha

BUY

Targets: Rs 565, Rs 585

Stop Loss: Rs 505

Last Close: Rs 528.75

The stock price has formed double bottom around Rs 492 and started recovering. On June 20, the stock made a bullish “Hammer” candlestick pattern on the daily chart, which indicates probable trend reversal for the short term. The stock price has reached above 5, 10 and 20 days EMA.  The stock can be accumulated between CMP and Rs 510, for targets of Rs 565 and Rs 585, keeping a stop loss at Rs 505.

(Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC securities. Views expressed are personal).