Nifty outlook & stock calls by Anand Rathi: Buy Bajaj Auto, Relaxo Footwear

The stock of Bajaj Auto has breached its short term 21-DMA which was placed at 3020, which will now act as a major resistance

BUY NIFTY | TARGET: 11,500 | STOP LOSS: 11,250

The Nifty index witnessed profit booking at higher levels and has reached the crucial support of a rising trend line which acted as a major support zone. So, as long as it respects this rising trend line, one can take a contra bet on the index with the expectation of a pullback towards 11,500 levels. The momentum indicators and oscillators on the weekly scales are still in buy mode which hints of some buying at lower levels. The volatility index “India VIX” jumped more than 25% to end near 23 levels, so