Remain long with 11,550 stoploss in Nifty
The Nifty has been trading in the narrow range of 11,787 to 11,564 for the last month. A close above 11,800 would bring fresh momentum buying in the Nifty, as primary trend has been bullish. Above 11,800, the Nifty could move to 12,000 and 12,430 targets in short term. On the downside, 11,550 has been the crucial support at which stop loss can be kept.
BUY RELIANCE INDUSTRIES
CMP: Rs 1,392
Target: Rs 1,480
Stop-loss: Rs 1,350
Stock price is hovering around its all-time high. The trend has been bullish with higher tops and higher bottoms. Bullish “Cup and Handle” Breakout is see on the weekly charts. Considering the technical evidences discussed above, we recommend buying the stock between CMP and Rs 1,370 for the target of Rs 1,480, keeping stop loss at Rs 1,350 on closing basis.
BUY ULTRATECH CEMENT
CMP: Rs 4,617
Target: Rs 5,000
Stop-loss: Rs 4,300
Recently, the stock registered a new all-time high, above the 4,600 levels. Bullish golden crossover is witnessed on the charts, indicating long-term trend reversal. The stock has broken out from the long consolidation which held for last 9 quarters. Considering the technical evidences discussed above, we recommend buying the stock at CMP and average it at Rs 4,450, for the target of Rs 5,000, keeping a stop loss at Rs 4,300 on closing basis.
The author is a research analyst working with HDFC Securities. Views expressed are his own.