The Nifty has risen more than 500 points in the last trading sessions. The next resistance for the Nifty comes at 200 DMA, which is currently placed at 11,202 odd levels. Oscillators have been moving up with positive divergence on the short term charts. Considering the sharp rise seen in the last three days, it would be advisable to adopt buy on dips strategy in the Nifty. Strong support is seen at 11,000 in the Nifty and same can be utilized to initiate fresh long positions.
BUY MULTI COMMODITY EXCHANGE OF INDIA LTD (Rs 911)
TARGET: Rs. 970
STOP-LOSS: Rs. 868
The stock has given multi month consolidation breakout on the charts. It closed at the highest level since January 15, 2018. For the last two sessions, the stock has been moving up with significant jump in volumes. We recommend buying the stock at the current market price, for the target of Rs 970, keeping a stop loss at Rs 868 on a closing basis.
BUY PETRONET LNG LTD (Rs 258)
TARGET: Rs 275
STOP-LOSS: Rs 246
The Stock is on the verge of giving highest monthly close. Stock has surpassed the 5 month’s price consolidation by closing above 255. Volumes have also been higher along with the price. Moving average and Oscillator setup is bullish on daily and weekly charts.
We recommend buying the stock at CMP, for the target of Rs 275, keeping a stop loss at Rs 246 on closing basis.
The author is a research analyst working with HDFC Securities. Views expressed are his own.