Hikal, Torrent Power: Top bets by Vinay Rajani of HDFC Sec for March 12

Nifty 

After opening down by 115 points, the Nifty index reached a low of 22314 within the first five minutes of trading and then began to recover. By the end of the session, Nifty had climbed back over 200 points. Today's recovery from the lower levels increases the likelihood of forming a higher bottom in the short term. Any level above 22700 would confirm a bullish trend reversal for the Nifty, potentially pushing it toward the target of 23000. Support has now shifted up to around 22300 levels.

 

Stock Picks 

Buy Hikal(392) | Target Rs. 450 | Stop-loss Rs. 365 

 

Hikal share price has broken out from bullish inverted head and shoulder pattern on the daily chart. Stock price has been forming higher tops and higher bottoms on the daily chart. Indicators and oscillators have turned bullish on daily and weekly charts.

  Buy Torrent Power (1333): | Target Rs. 1579 | Stop-loss Rs 1260 

Torrent Power share price has broken out from bullish inverted head and shoulder pattern on the daily chart. Stock price has recently surpassed the crucial resistances of 20- and 50-days EMA. Price rise in stock is accompanied by jump in volumes. Stock price has also confirmed higher top preceded by higher bottom on the daily chart.

 

(Disclaimer: Vinay Rajani is a senior technical and derivative analyst at HDFC Securities. Views expressed are his own.)