Nifty may soon surpass 11,270 in the coming days: Vinay Rajani of HDFC Sec

Nifty is continuing its uptrend and looks set to achieve 76.4% retracement of the entire fall seen from 12,430 to 7,511.

Nifty is continuing its uptrend and looks all set to achieve the target of 11,270, which happens to be the 76.4% retracement of the entire fall seen from 12,430 to 7,511. There is a small hurdle of 200 days SMA, placed at 10,886 but the setup of momentum indicators suggest that Nifty would surpass the 200 DMA and will reach a target of 11,270 in the coming days. Trading longs can be held with the stoploss of 10,690.

BUY CHOLA FIN (213.75) | Target: Rs 230 | Stop-loss: Rs 207
 

The stock price has broken out from Flag pattern on the daily chart. The entire NBFC space outperformed with significant jump in volumes on Tuesday. The stock is trading above its 20, 50 and 100 days EMA, indicating medium term up trend. 

BUY DABUR INDIA (480): | Target Rs. 505 | Stop-loss Rs 465
 

The stock price has reclaimed a level above its 200 DMA with the rise in volumes. On Tuesday, it surged 3% and broke out from the last 5 session’s narrow price consolidation. The stock has been forming higher tops and higher bottoms on the daily charts. Indicators and oscillators have been showing strength on the daily and weekly charts.

==============================
Disclaimer: Vinay Rajani is Technical Research Analyst at HDFC Securities and may have positions in one or more stocks. Views are personal.