Vinay Rajani expects Nifty to rally above 22,800; shares 2 stock ideas

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. Vinay Rajani, CMT, Senior Technical Analyst, HDFC securities 

Nifty View

 After yesterday's smart recovery from lower levels, Nifty ended flat at 22,749. The 20-DEMA at 22,824 acted as a key intraday hurdle, and the index reversed lower after testing it. However, Nifty held comfortably above yesterday’s swing low, retaining its short-term strength. The 22,370–22,400 zone remains an important support band. A sustained move above 22,800 could clear the 20-DEMA resistance and open the way toward the next resistance at 23,175.

Stocks to buy by HDFC Securities

 Buy Sagility ₹45.60 | SL ₹43.50 | Tgt ₹48.60 Sagility's stock price has broken out from downward sloping trend line on the daily chart. Stock is placed above all key moving averages, indicating bullish trend on all time frames. Price rise is accompanied by rise in volumes. Indicators and oscillators have turned bullish on the short-term charts. Buy Cohance Life ₹481 | SL ₹471.3 | Tgt ₹499 Cohance Life stock price has broken out from multi-month consolidation with significant jump in volumes. Pharma stocks have been showing strength for last couple of sessions.  Stock is placed above 20,50 and 100 days EMA. Indicators and oscillators have turned bullish on the daily charts.