Nifty outlook & weekly stock picks by Vinay Rajani of HDFC Securities

For the last month and a half, Nifty has been consolidating in the range of 15,550-15,950. On Tuesday, Nifty closed in the red for the second consecutive session, however, the overall trend is still neutral for the index. The markets are expected to remain range bound and choppy unless the range of 15,550-15,950 is taken out on the either side in Nifty.

Stock recommendations

Buy Fortis Healthcare (Rs 256.5) | Target: Rs 273 | Stop-loss: Rs 246

The stock has taken out the crucial resistance of the previous swing top placed at Rs 254. It has been in on a primary uptrend as it is trading above all important moving averages with higher tops and higher bottom formation. The  hospital, healthcare and diagnostic sectors have been outperforming the overall market for the last couple of months.

Buy Godrej Agrovet (Rs 659) | Target: Rs 725 | Stop-loss: Rs 620

The stock is on the verge of breaking out from the consolidation of the last four weeks. The primary trend of the stock is bullish as short term moving averages are placed above medium to long term moving averages. Agriculture and chemical sectors have been in a bullish trend lately. The daily DMI, RSI and MACD indicators are showing strength in the current upward trend.

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