Technical calls and outlook on Nifty by Vinay Rajani, Technical Analyst, HDFC Securities:
Nifty View
Nifty has recently taken support at 11,340 and resumed its uptrend. The positional trend of the Nifty has been bullish. Resistance for Nifty is seen at 11,500. Longs in Nifty should be held with a Stop loss of 11,340.
Buy Infosys
CMP: Rs 1,409
Target: Rs 1,495
Stop-loss: Rs 1,347
Stock has broken out from the price consolidation which held in last 1 month. Stock has registered new all-time high with healthy volumes. Recent depreciation in rupee against the dollar is going to impact positively to the entire IT sector. Rupee has reached at the all-time low level, nearing to 70. Nifty IT Index has also broken out from the last 1 month price consolidation. Being large cap IT Company, Infosys is likely to continue its upwards journey with new milestones. We recommend buying Infosys for the upside target of 1495, keeping SL at 1347.
CMP: 580.60
Target: Rs 659
Stop-loss: Rs 555
Stock price has broken out from the long-term downward sloping channel on the weekly chart. Volumes have been rising for along with the rise for the last two months. Stock price has surpassed the crucial resistance of 100 week moving average placed at 554. Price is trading above all important moving average parameters on the daily charts. Indicators like MACD and ADX have turned bullish on the weekly charts. We recommend buying Alembic Pharma for the upside target of 659, keeping SL at 555.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.