Nifty in uptrend, can easily cross 17,000 level: Vinay Rajani

Nifty is in continuation of an uptrend. The IT sector has helped the 50-pack index outperform other indices. Banking and NBFC indices, which have been consolidating, are also expected to perform from hereon. ADX indicator has crossed the DI line on the upside, which indicates high momentum phase for the Nifty and could easily push the index past 17,000 levels soon. Support for the Nifty is seen at 16,350.

Stock recommendations:

Buy L&T Technology Services (Rs 3,843): | Target: Rs 4,100 | Stop-loss: Rs 3,700
 

A bullish “Flag” Pattern Breakout is seen on the Daily Chart. The stock has been finding support on its 50-days EMA. It has broken out from the last 14 days price consolidation with rise in volumes. Indicators and oscillators have been showing strength in the current uptrend. The stock is placed above its medium to long term moving averages, indicating a bullish trend on all time frames.

Buy Century Textile (Rs 807): | Target: Rs 855 | Stop-loss: Rs 775
 

The stock has been finding support on its 20 days EMA. On 28th July, the stock surged more than 10% with a jump in volumes, which resulted in a fresh breakout. However, the stock soon after went into a correction mode but now seems to be resuming its primary uptrend. Indicators and oscillators have been showing strength in the current uptrend and a bullish “Flag” Pattern Breakout is seen on the Daily Chart. The stock is placed above medium to long term moving averages, indicating a bullish trend on all time frames.

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Vinay Rajani is Senior Technical and Derivative Research Analyst at HDFC Securities. The analyst doesn't have any holding in the stock. Views are personal