Nifty rose for the seventh session on the trot, to close at 12,643 on Tuesday. BankNifty continued its recent outperformance over Nifty, rallying almost 22 per cent in last seven sessions. Benchmarks are now in uncharted territory with full momentum. Pattern target for Nifty is seen in the range of 12,800-13,000. Support for the Nifty is shifted up to 12,300 odd levels. At current levels, Midcap and smallcap stocks look more attractive than largecaps.
BUY ONGC (Rs 70.85): | Target: Rs 74 | Stop-loss: Rs 69
The stock rose more than 3.5 per cent with significant jump in volumes. It also saw long build up in the derivative side on November 10, 2020. Short-term moving average of 8-day EMA has crossed over 21-day EMA on the upside. Moreover, oil and gas as well as PSU sector have started showing some traction after a long time.
BUY GAIL (90.85): | Target Rs. 96 | Stop-loss Rs 87.5
The stock price has surpassed the double top resistance of 90 placed on the daily chart. It has also closed above its 20 and 50-day EMA resistance. Volumes have gone up significantly along with the price rise in last few sessions. Oil and Gas as well as PSU sector have started showing some traction after a long time.
Disclaimer: Vinay Rajani is Technical Research Analyst at HDFC Securities. The analyst doesn't have any holding in the stock. Views are personal.