Buy Nifty for the Target of 10,250; Stop loss: 9,726
Nifty managed to hold above the previous day low of 9,726 and reversed north during the second half of the session. Last week, the index took support on the upward sloping trend-line and 20 day-moving average (DMA). Technically, Nifty is showing the sign of continuation of an upswing after running correction. Any level above 10,050 could push Nifty towards 10,200-10,250 target.
o BUY ICICI LOMBARD GENERAL INSURANCE (Rs 1,379): | Target: Rs.1,480 | Stop-loss: Rs 1,320
The primary trend of the stock is bullish with higher tops and higher bottoms on the daily charts. Short-term moving averages are trading above medium to long-term moving averages. The stock has surpassed its 200 DMA resistance recently. Indicators and oscillators have been showing strength on the daily and weekly charts.
o BUY OIL INDIA (Rs 102): | Target: Rs. 112 | Stop-loss: Rs 98
The stock price has formed inverted head and shoulder pattern on the daily charts. Volumes have also gone up significantly along with the price rise. The stock is placed above short-to-medium term moving averages, which indicates bullish trend. Indicators and oscillators have been showing strength on the short-to-medium term charts.
Disclaimer: Vinay Rajani is Technical Research Analyst at HDFC Securities. He may have positions in one or all of the above mentioned stocks. Views are his own.
