Tanla Platforms, HBL Engineering, Bharti Hexacom stock ideas by Jatin Gedia

Stock market outlook: Jatin Gedia of Teji Mandi expects the pullback in Nifty to continue citing positive cues from the daily and hourly momentum indicators.

Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion. Jatin Gedia - VP, Technical Research Teji Mandi Investment Technologies Pvt Ltd Nifty has continued to consolidate between 22,350 - 22,850 for the past five trading sessions. On Wednesday, the Nifty formed a small bodied bullish candle with a long lower shadow indicating buying interest around the 22,500 - 22,450 zones. On the upside the immediate hurdle is placed at 22,870 - 22,900 which is the 61.8 per cent fibonacci retracement level of the fall from 23,170 - 22,370. The daily momentum indicator has a positive crossover while the hourly momentum indicator has triggered a fresh positive crossover from the equilibrium line. This suggests that the pullback from 22,500 is likely to continue over the next few trading sessions toward the resistance zone of 22,870 - 22,900. A breach below 22,500 would violate the bullish stance and would lead to a decline towards 22,200 - 22,180 to retest the recent swing low. Bank Nifty outperformed yesterday, closing with gains of more than 0.5 per cent at 54,267. We can observe a positive divergence on the daily charts as a new price low was not accompanied by a new low on the momentum indicator. The immediate hurdle is placed at 54,650 - 54,700. A move beyond this zone would suggest a reversal of the current downtrend and a rally towards 56,000 - 56,200 which coincides with the previous swing high. A breach below 53,700 would negate the bullish stance and open doors for further downside towards 53,000 - 52,820. 

Stock ideas by Jatin Gedia of Teji Mandi

 Buy TANLA PLATFORMS | CMP ₹597.60 | SL ₹581 | TGT ₹645 Tanla Platforms was consolidating in ₹550 - 580 range for the past eight trading sessions. Yesterday it decisively broke out of that range on the upside suggesting the next leg of the up move will resume. The breakout was accompanied by above-average volumes suggesting a genuine breakout and larger participation in the direction of the primary trend. Daily momentum indicator has a positive crossover which is a buy signal. Thus, the price volume breakout and the momentum setup suggest the stock is poised to trade with a positive bias over the next few trading sessions. Buy BHARTI HEXACOM | CMP ₹1,664.50 | SL ₹1,620 | TGT ₹1,733 Bharti Hexacom has been forming higher highs and higher lows suggesting an uptrend. For the past six trading sessions it was consolidating in a narrowing range and today it broke out of that range on the upside suggesting the uptrend will resume after a brief pause. Daily momentum indicator has a positive crossover which is a buy signal. Thus, both the price pattern breakout and the momentum setup suggest the stock is poised to trade with a positive bias over the next few trading sessions. Buy HBL ENGINEERING | CMP ₹811 | SL ₹785 | TGT ₹875 After pulling back to ₹755, the 61.8 per cent retracement level of the ₹700 - 840 rally HBL Engineering stock has once again resumed its uptrend. It formed a morning star candlestick pattern at the ₹755 - 740 support zone which is a trend reversal pattern. Momentum indicator has a positive crossover which is a buy signal.