Nifty outlook and technical calls by Devarsh Vakil & Vinay Rajani - PCG Desk, HDFC Securities: Nifty View: Nifty has been forming new all-time high days by day and now it has reached above the milestone level of 11000, to close at 11,083. The only resistance which can be seen technically is 11360, which happened to be 161.8% Fibonacci extension levels of the entire swing seen from 6,825(Feb 2016 Low), to 9,119(Sep 2016 High) High and then towards 7893(Dec 2016 Low). Nifty has entered in to a momentum buying phase and the target of 11,360 can be seen in the short term only. Support for Nifty is seen somewhere around 10,780. Buy BANK OF BARODA CMP: Rs 173.15 Stop Loss: Rs 165 Target: Rs 185 Stock formed Bullish Engulfing candlestick on the 17th Jan 2018, on the daily chart. Stock has also broken out from downward sloping trend line on the daily chart. Stock found support on the multiple bottom placed at 155 odd levels. This support also coincides with partially filled gap between 145 and 157.
Stock surpassed crucial resistance of 50 days EMA placed at 164. Oscillators like RSI and KST have turned bullish on daily charts. Considering the technical evidences discussed above, we recommend buying the stock between 173.15 and 169, for the target of 185, keeping a stop loss at 165 on closing basis. Buy INDIAN BANK CMP: Rs 397.60 Stop Loss: Rs 383 Target: Rs 425 Stock has broken out from downward sloping Channel on the daily chart. Stock has surpassed crucial resistance of 50 days EMA placed at 373. Stock has been an outperformer in the entire PSU banking space for last many months. Oscillators like Stochastic and KST have turned bullish on daily charts. Bullish Engulfing candlestick on the daily chart, indicating probable trend reversal. Considering the technical evidences discussed above, we recommend buying the stock between 398 and 390, for the target of 425, keeping a stop loss at 383 on closing basis. Disclaimer: The analyst may have positions in any or all the stocks mentioned above.