Nifty outlook & two stock ideas by Vinay Rajani of HDFC Securities

Nifty continued its upwards journey and closed at new all-time high levels on Tuesday. RSI for the Nifty has reached the overbought zone on daily, weekly, and monthly charts. However, negative divergence is not seen on any of the time frames yet, which indicates the strength in the current uptrend. Nifty is expected to continue its uptrend and longs should be held on a trailing stop loss basis. Strong support is seen at 16,700 odd levels in Nifty. Largecaps are expected to outperform the smallcap space for the short term.
 

Buy Axis Bank (Rs 787): | Target: Rs 835 | Stop-loss: Rs 750
The stock has broken out from the bullish cup and handle pattern on the weekly charts. Bank Nifty Index has recently broken out on the medium-term charts. Short-term moving averages are trading above medium-term moving averages. Financial Services and Banking Sector look bullish on the short term charts. The stock has been forming higher tops and higher bottoms.
 

Buy Adani Ports (Rs 747): | Target: Rs 810 | Stop-loss: Rs 710
The stock has broken out from the last 11 week’s price consolidation. The short-term moving averages have crossed over medium to long-term moving averages, which indicates a change in the short-term trend. Indicators and oscillators have turned bullish on daily charts.
 

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