Technical calls from HDFC Securities: Buy ONGC, Grasim Industries

Nifty outlook and top trading ideas by Vinay Rajani - Technical Analyst, HDFC Securities.

Target of 12,000 and 12,400 on cards for Nifty50

Nifty broke out from the consolidation range of 11,550 to 11,760 to register an all-time high of 11,810 during Tuesday’s session. The index took support on its 20-day moving average (DMA) during previous week and resumed the uptrend. It is now heading for the upside targets of 12,000 and 12,400. Support is now shifted upward to 11,700 levels.

ONGC

Recommendation: Buy

Last Close: Rs 160

Target: Rs 155

Stop-loss: Rs 168
 

The stock has broken out from the consolidation range of Rs 155-160. It has been sustaining above its 200-DMA. Indicators and oscillators have been showing strength on the daily and weekly charts. Considering the technical evidences, we recommend buying the stock between CMP and Rs 157 for the target of Rs 168, keeping stop-loss at Rs 155 on closing basis.

GRASIM

Recommendation: Buy

Last Closing: Rs 885

Target: Rs 935

Stop-loss: Rs 860

The stock has witnessed bullish Inverse head and shoulder breakout on the daily charts. Downward sloping trend line breakout on the daily charts, bullish Flag Pattern breakout on the daily charts and 20-day EMA crossing over 50 days EMA, indicate a bullish trend. Considering the technical evidences discussed above, we recommend buying the stock at CMP and average it at Rs 870, for the target of Rs 935, keeping a stop-loss at Rs 860 on closing basis.

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The author is a research analyst working with HDFC Securities. Views expressed are his own.