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Vinay Rajani recommends to hold longs on Nifty with a stop at 17,800

Among individual stocks, the technical & derivative analyst from HDFC Securities recommends buying RCF and NCC.

Topics
Market Outlook | Market technicals | stock market trading

Vinay Rajani  |  Mumbai 



Markets, stocks, buy, sell, trading, shares, stock market

Nifty View

On December 26, 2022, the Nifty found support at its 100-day SMA and turned north. The breadth has been very strong in the last two trading sessions, where Smallcap Index outperformed Nifty with a good margin.

The next resistance for Nifty is seen at 18,200, above which Nifty could extend the gains towards 18,430. Existing longs should be held with the stop loss of 17,800 on the Nifty.

BUY

RCF

Last close: Rs 116.5

Target: Rs 127

Stop Loss: Rs 110

For the week ended November 25, 2022, the stock broke out from bullish inverted head and shoulder pattern on the weekly charts. After breaking out at Rs 108, the stock extended the rise towards Rs 144 and then started correcting.

On December 26, 2022, the stock reached to a crucial support of the inverted head and shoulder neckline. Fertilizer stocks have been in to bullish momentum in recent past. Indicators and oscillators have been holding strength on the weekly charts.

BUY

NCC

Last close: Rs 82.10

Target: Rs 86.50

Stop Loss: Rs 79

After a sharp correction from its recent swing high of Rs 96.90, the stock tested its 50-day SMA support and reversed north. The stock price has also taken support at its previous swing highs on the daily chart.

(Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC securities. Views expressed are personal).


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First Published: Wed, December 28 2022. 08:31 IST

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