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Nifty could consolidate between 11,900 and 12,050 in short term: HDFC Sec

Previous top on the daily charts is placed at 11,794, which is likely to provide support to the index

Nifty Outlook | Markets | Market technicals

Vinay Rajani  |  Mumbai 

Bonds, Stock markets, Shares, Trading
Representative image

Nifty outlook

From the bottom of 10,790, registered on September 24, 2020, Nifty saw a sharp recovery towards 12,022. Nifty has registered a rise of 1,232 points from the recent bottom in the span of just 11 trading sessions. After such steep rise, Nifty could consolidate for a few sessions. The probable range would be 11,900-12,050. Previous top on the daily charts is placed at 11,794, which is likely to provide support to the index. Any level above 1,2050 could take Nifty towards 12,250 levels.

Stock recommendations

BUY (Rs 1,357): | Target: Rs. 1,450 | Stop-loss: Rs 1,297

The stock has broken out from pennant pattern on the daily charts. Volumes have been rising along with the price rise. The primary trend of the stock has been bullish with higher tops and higher bottoms on the weekly and monthly charts. The stock is placed above all important moving average. Midcap IT stocks have been performing very well.

BUY (Rs 855): | Target: Rs. 910 | Stop-loss: Rs 830

This stock is about to break the big consolidation, between 800 and 855, which it has been in for the last eight weeks. On October 13, 2020, the stock rose 1.25 per cent with healthy volumes. On the closing basis, it is very near to its all-time high. Short-term moving averages are trading above medium to long term moving averages. And, Indicators and oscillators have been showing strength in the recent up move.

Disclaimer: Vinay Rajani is Technical Research Analyst at The analyst doesn't have any holding in the stock. Views are personal.

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First Published: Wed, October 14 2020. 08:05 IST