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Technical calls from HDFC Securities: Buy Bajaj Finserv, Indraprastha Gas

Technical calls from Nandish Shah, Senior Technical & Derivatives Analyst at HDFC Securities.

Nandish Shah  |  Mumbai 

Equity fund managers buy Infosys, sell Reliance Industries in October

Remain long in Nifty with the stop loss of 12,000; Target 12,400

After a minor profit booking on Monday, the Nifty resumed its uptrend yesterday by rising 111 points to close at all time high level, surpassing the previous all-time high closing level of 12,151, registered on November 28.

The Nifty is now placed above all important moving average parameters. Short-term oscillators like DMI and RSI have turned bullish. Earlier resistance of 12,000 will now interchange its role as a support

In the derivatives’ segment, we have seen long buildup in the Nifty Futures’ during the last few days. Amongst the Options, we have seen Put writing at 12,000-12,100 strike prices yesterday, indicating 12,000 levels to act as a strong support going forward.

Considering the Technical and Derivative Indicators discussed above, our advice would be to accumulate long positions in the Nifty with the stop loss of 12,000 levels. Target for the Nifty is seen at 12,400

Buy | (9,362) | Target: Rs 9,950 |Stop-loss: Rs 9,050 | RETURN 6%

The stock price has broken out on the daily chart by closing above the crucial resistance level of 9,285 level. Oscillators and momentum Indicators like RSI and MACD turned bullish on the daily chart. The stock price is trading above its 20, 50, and 200-day SMA, indicating bullish trend for all the time frames. In the derivatives, we have seen long build-up in the Futures’ yesterday. Considering the technical & Derivative evidences discussed above, we recommend buying the stock between Rs 9,362 and Rs 9,200 for the target of Rs 9,950, keeping stop loss at Rs 9,050.

Buy| (Rs 432):|Target: Rs 476 | Stop-loss: Rs 405 | RETURN 10%

After forming double-bottoms around 397 odd levels, the stock price reversed northward to close above the downward sloping trend ine, adjoining the high of November 21 and December 12, 2019. The stock price closed at an all-time high level yesterday by closing above the previous resistance of 427 levels with higher volumes. Oscillators and momentum Indicators like RSI and MACD are showing strength in the stock on the daily and weekly charts. In the derivatives, we have seen long build-up in the IGL Futures’ yesterday. Considering the evidences discussed above; we recommend buying the stock at the current market price (CMP) and average it at Rs 420, for the target of Rs 476, keeping a stop loss at Rs 405.

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

First Published: Wed, December 18 2019. 07:52 IST