Nifty outlook and top stock picks by CapitalVia: Buy HDFC, Ultratech Cement

Technical calls by Gaurav Garg, Head of Research, CapitalVia Global Research Limited- Investment Advisor

Nifty View:
 

Market remained range bound throughout the day on Wednesday, July 17 with broader Nifty50  managing to trade in tight 50 points range. The index closed at 11,687.50 mark, up 24.90 points, respecting 11,600. Market has been closing higher for the last seven days, making higher highs and higher lows.

Market is witnessing shifting of call writing from lower strikes to higher strikes, which indicates that resistance for market is shifting upwards. Now key resistance stands at 11,700 followed by 11,800. Support level stands at 11,600. Bank Nifty is likely to breakout above 30,880.
 

In the coming week we can see a big movement in housing finance stocks.

Stock recommendation: 
 

HDFC

Recommendation: BUY
 

Target: Rs 2,350
 

Stop loss: Rs 2,256
 

The stock is in a continuous bullish trend. The level above 2,290 would also result into a multiple breakout on the charts as there is no real resistance above 2,300.70. Moving average and Oscillator setup is bullish on the short-term and medium-term charts.
 

Considering the technical evidence discussed above, we recommend buying the stock at Rs 2,290 for the target of Rs 2,350, keeping a stop loss at Rs 2,256 on closing basis.

ULTRATECH CEMENT 

Recommendation: BUY
 

Target: Rs 4,700
 

Stop loss: Rs 4,580
 

It has remained resilient in the recent past. The scrip is trading above all important moving averages. Considering the technical evidence discussed above, we recommend buying the stock at Rs 4,623 for the target of Rs 4,700, keeping a stop loss at Rs 4,580 on closing basis.

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Disclaimer: The analyst may have positions any any or all of the above mentioned stocks.