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Two stock ideas by HDFC Securities: Buy Arvind Fashion, Hatsun Agro

Trading longs should be held on with the stop loss of 12,700 levels. We expect midcaps to outperform in the coming days.

Topics
technical calls | Trading strategies | Markets

Nandish Shah  |  Mumbai 

Equity fund managers buy Infosys, sell Reliance Industries in October
Out of the last twelve trading sessions, Nifty closed in the green in the eleven sessions, gaining by more than 1,200 points.

Nifty Outlook: Remain bullish with the trailing stop loss of 12,700

Nifty continued its northward journey for the third day on the trot where it gained by 94 points to close at a new all-time high at 12,874 levels. Out of the last twelve trading sessions, Nifty closed in the green in the eleven sessions, gaining by more than 1,200 points.

In the Options segment, we have seen call writing at 13,000 levels, indicating Nifty may find resistance around 13,000 levels. Considering the kind of sharp run, we have had already during the last twelve sessions and call writing at 13,000 level, we expect a slowdown in the momentum for the benchmark Indices. Trading longs should be held on with the stop loss of 12,700 levels. We expect midcaps to outperform in the coming days

Here are two buy recommendations for the next 3-4 weeks:

BUY ARVIND FASHION (136): | Target Rs 151 | Stop-loss: Rs 129 | Return: 11%

The stock price has broken out on the daily charts with a surge in the volumes to close at two months high. Short-term trend has turned positive as the stock price is trading above its 5 and 20 day-EMA. Oscillators and Momentum Indicators like RSI, MFI and MACD are showing strength in the stocks. Therefore, we recommend buying Arvind Fashion at CMP of Rs 136 and average at 133 for the target of 151, keeping a Stop Loss at 129

BUY (858): | Target Rs. 944 | Stop-loss Rs 810 | Return 10%

After facing correction for the last few days, the stock price resumed its uptrend by closing at two months high with higher volumes. The trend of the stock is positive where the stock price is trading above its all-important medium-term and long-term moving averages. +DI is placed above the -DI while ADX line is placed above the 20 levels, indicating momentum in the uptrend. The stock price is forming bullish higher tops higher bottom on the daily chart. Therefore, we recommend buying at CMP of Rs 858 and average at 830 for the target of Rs 944, keeping a stop loss at 810.

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Disclaimer: Nandish Shah is a Technical Research Analyst at Views are personal.

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First Published: Wed, November 18 2020. 08:10 IST
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