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Nifty view & technical calls from HDFC Securities: Buy L&T Infotech, CDSL

Technical calls from Mr. Nandish Shah, Technical & Derivatives Analyst, HDFC securities

Nandish Shah  |  Mumbai 

Trading Strategy

Remain long in Nifty with the stop loss of 11,900; Target 12,400

After a minor profit booking on Friday and Monday, the Nifty resumed its uptrend Tuesday by rising by 76 points to close at 12,108 levels.

The short-term and medium-term trend of the Nifty remain positive with Nifty trading above its 20,50 and 200-day EMA. Oscillators and momentum Indicators like RSI and MACD turned positive on the daily chart.

If we take entire rally started from 11,614 (February 3, 2020 Bottom) to 12,160 (February 6, 2020 top), 38.2 per cent retracement of that swing comes at 11,952. Previous week’s pivot support is placed at 11,958, which coincides with the Fibonacci retracement support. Tuesday's high formed at 12,170 has become short-term resistance.

In the derivatives’ segment, we have seen Put writing at 11,900-12,000 strike prices, indicating 11,900 levels to act as a strong support going forward.

Considering the technical and derivative Indicators discussed above, our advice is to remain long and accumulate long positions in the Nifty on declines with the stop loss of 11,900 levels. Target for the Nifty seen at 12,400.

Buy | (Rs 1,996) | Target: Rs 2,150 | Stop-loss: Rs 1,900

The stock price has broken out on the daily chart yesterday by closing above the crucial resistance level of 1,970 level, at an all-time high with higher volumes. Oscillators and momentum Indicators like RSI and MACD have been showing strength in the stock. Considering the technical evidences discussed above, we recommend buying the stock between Rs 1,996 and Rs 1,960 for the target of Rs 2,150, keeping stop loss at Rs 1,900.

Buy | (Rs 292) | Target: Rs 321 | Stop-loss: Rs 277

The stock price has broken out on the weekly chart last week by closing at eighteen month high with higher volumes. It is forming bulish higher top higher bottom formation on the daily chart since August 2019. The stock's primary trend is positive where it is trading above its 20,50 and 200 day SMA. Oscillators and momentum Indicators like RSI and MACD are showing strength in the stock on the daily and weekly charts. Considering the Technical evidences discussed above; we recommend buying the stock at the current market price and Average it at Rs 285, for the target of Rs 321, keeping a stop loss at Rs 277.


Disclaimer: Views expressed are the author's own. He may have positions in one or all of the above mentioned stocks.

First Published: Wed, February 12 2020. 07:25 IST
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