Nifty violated the short-term support of 11,050: HDFC Securities

Technical calls and Nifty outlook by Devarsh Vakil & Vinay Rajani - PCG Desk, HDFC Securities:

Nifty View:

 

Nifty Violated the short term Support of 11050: Nifty has violated its short term support of 5 days EMA placed at 11050, during yesterday’s session. Nifty fell more than 80 points and closed on a weak wicket yesterday. Market breadth has been going weak for last couple of weeks and due to few Largecaps outperformance, Nifty has been able to hold at higher levels till now.  Next Support for the Nifty is seen somewhere around 10850, which happened to be the support provided by upward sloping trendline, adjoining previous tops on the weekly charts

 

Buy: Persistent Systems

CMP: Rs 780

Stop Loss: Rs 755

Target: Rs 830

 

Primary trend of the stock has been bullish with higher tops and higher bottoms. IT sector has been outperforming other sectors for last couple of weeks. Short term moving averages are trading above long term moving averages. Oscillators like MACD and ADX have been showing strength in the counter. Volumes have gone up significantly along with price rise in the month of January 2018. Considering the technical evidences discussed above, we recommend buying the stock between 780 and 765, for the target of 830, keeping a stop loss at 755 on closing basis. 

 

Buy: Hindustan Unilever

CMP: Rs 1,400

Stop Loss: Rs 1,365

Target: Rs 1,470

 

Stock has shown resilient movement till date and has been holding its level around its all-time high. In last two sessions, Stock has broken out from the consolidation, which was seen after company posted strong set of quarterly results. Short term moving averages are trading above long term moving averages. Oscillators have also been showing strength on the long term charts Considering the technical evidences discussed above, we recommend buying the stock between 1400 and 1375, for the target of 1470, keeping a stop loss at 1365 on closing basis.  

Disclaimer: The analyst may have positions in any or all the stocks mentioned above.