Vinay Rajani recommends buying ICICI Securities, Prestige Estates

According to Vinay Rajani of HDFC Securities, Nifty has got strong support at 17,944. High of 18,350 registered on Tuesday could act a short term resistance for the index.

After seven consecutive bullish candles on the daily chart, the Nifty registered a red candle with the fall of more than 1 per cent. The Nifty Smallcap Index nosedived more than 2.3 per cent and breadth of the market deteriorated on Tuesday. Nifty closed below its 5 days EMA support for the first time since December 21, 2021. However, primary trend of the index is still bullish and dips should be bought in. Nifty has got strong support at 17,944. High of 18,350 registered on Tuesday could act a short term resistance for the index. We expect it to consolidate and stock specific bullish moves to continue in the coming days.

Buy ICICI Securities (816) | Target: Rs 880  | Stop-loss: Rs 780

The stock has surpassed the previous top resistance of 810 on the daily chart. In the week ended 14th Jan 2022, it broke out from the consolidation which held for previous 10 weeks. Indicators and oscillators have turned bullish on daily and weekly charts. The stock has been forming higher tops and higher bottoms on daily charts. 

Buy Prestige Estate (530) | Target: Rs 570 | Stop-loss: Rs 505

The stock has surpassed the previous swing high of 522. After 3 months of price consolidation, it has resumed its primary uptrend with rising volumes and is placed above all important moving averages, which indicates bullish trend on all time frames. Indicators and oscillators have turned bullish on the daily and weekly chart.


Disclaimer: Vinay Rajani is Senior Technical & Derivative Analyst, HDFC securities. Views own. He holds no positions in the stocks.