Nifty support shifts higher, next target at 9,650: Vinay Rajani of HDFC Sec

IGL is in an overall up trend on the daily and weekly charts

Close above 9,390 augers well for Nifty, Next Target 9,650

Nifty has managed to take out the strong resistance of 9,390, which happens to be the previous top on the short term charts. Next resistance for the Nifty is seen at 9,650, followed by 9,970. Support for the index is now shifted up to 9,200.

STOCK IDEAS

BUY IGL (469): | Target Rs. 500 | Stop-loss: Rs 450

The stock is in overall uptrend with higher tops and higher bottoms on the daily and weekly charts. The stock price is placed above all important moving averages. It has resumed its uptrend after running correction. Indicators and Oscillators setup is bullish on the short-to-medium term charts.

BUY EICHER MOTORS (14,340): | Target Rs. 15,000 | Stop-loss: Rs 13,815

This stock has been holding its strength for the last couple of weeks. It has started forming higher bottoms and higher tops on the short-term charts. The stock price has reclaimed a level above its 20-day EMA. Auto stocks have been beaten down a lot and could see pullback in the coming days.

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Disclaimer: Vinay Rajani is technical analyst at HDFC Securities. He may have positions in one or all of the above stocks. Views are his own.