Nifty outlook, 2 technical stock ideas for today by HDFC Sec's Vinay Rajani

Stocks to buy today: EMIL and Ingersoll Rand among top stock picks by Vinay Rajani of HDFC Securities.

Disclaimer: This article is written by Vinay Rajani, CMT, senior technical analyst, HDFC Securities. Views expressed are his own. Readers' discretion is advised.

 

Nifty View

The broader trend remains firmly bearish, with Nifty continuing to print lower tops and lower bottoms while trading below key moving averages. However, with the index now more than 1,050 points below its August swing high of 24,774, the short-term trend is approaching oversold territory. Nifty has also arrived at a critical support zone around 23,600, which coincides with the previous swing low. A decisive break below this level could open the door for further downside towards 23,478 and 23,172—key Fibonacci retracement levels that may act as the next supports.

 

 

On the upside, immediate resistance has shifted down to 23,800, followed by 24,000. Sustained trading above 24,000 would be required to improve the near-term technical setup and trigger a meaningful recovery. CHECK Stock Market LIVE Updates

 

Stocks to Buy today - Recommendations by Vinay Rajani, HDFC Securities 

Buy EMIL at ₹184.9 | Stop loss: ₹175 | Target: ₹198

 

EMIL's stock price has broken out of the bullish “Flag” pattern on the daily chart. A jump in volume accompanies this price rise. The stock is placed above the 20 DEMA, which indicates a bullish trend on the short-term time frame. The daily RSI has been sustaining above 50. 

 

Buy IngersolRand at ₹4760 | Stop loss: ₹4550 | Target: ₹5190

 

After running a correction from the recent swing high, Ingersoll Rand's stock found support on its 20 DEMA and bounced back. The primary trend of the stock has been bullish, with higher tops and higher lows, and the price level is above all key moving averages.