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Nifty may register new all-time high once it conquers 12,050: HDFC Sec

Trading longs should have stoploss at 11,700 in Nifty

Markets | HDFC Securities | Bajaj Finance

Vinay Rajani  |  Mumbai 

Trading Strategy

Nifty outlook

Nifty has surpassed the crucial resistance of 11,750, which happened to be the previous three session’s high. BankNifty has been outperforming Nifty with a huge margin. BankNifty has reached at the highest level since March 11, 2020. Nifty is expected to move up with the upside target of 12,000-12,050. A close above 12,050 would brighten the chances for the new all-time high above 12,430 in Nifty. Trading longs should have stoploss at 11,700 in Nifty.

Stock recommendations

BUY (Rs 3,484): | Target: Rs. 3,690 | Stop-loss: Rs 3,350

The stock seems to have resumed its primary up trend after couple of month’s running correction. The 8-day EMA has crossed over 21-day EMA, which indicates that the short-term trend has again turned bullish. The stock has resumed higher top and higher bottom formation on the short term chart. Indicators and oscillators have turned bullish on daily chart.

BUY LIC HOUSING (Rs 300.5): | Target: Rs. 315 | Stop-loss: Rs 290

The NBFC sector has been outperforming for the last couple of weeks. The stock has been forming complex inverted head and shoulder pattern and is on the verge of breaking out from the neckline on the daily chart. For the last 10 consecutive weeks, the stock is consolidating in narrow range. Any close above 310 would result as a medium term breakout on the charts.

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, November 04 2020. 08:10 IST