Nifty outlook and technical calls by Vinay Rajani Technical Analyst, HDFC Securities:
Nifty View
Nifty managed to hold above the previous week’s low of 10866 and recovered nicely, to close at 11067. Bank Nifty also recovered sharply on the back of short covering. Due to the oversold condition of many of the beaten-down stocks in large cap segment, the market witnessed a pullback rally. On the upside, Nifty has got resistance at 11170-11200. It would be advisable to hold Nifty longs with 10866 stop loss.
Buy BIOCON
CMP: Rs 701.55
Target: Rs. 740
Stop-loss: Rs 675
The stock price has registered a new all-time high with significant volumes. The stock price has also broken out from last 8 month’s consolidation. Pharma Sector has also been outperforming. Oscillators are also showing bullish momentum for the stock. We recommend buying Biocon for the target of 740, keeping SL at 675.
Buy DIVIS LAB
CMP: Rs 1388
Target Rs. 1500
Stop-loss Rs 1328
The stock price has been hovering around its all time. Despite a heavy sell-off in the most of the stocks, Divis has been able to show resilient movement in the recent downswings in markets. Short term moving averages are trading above long-term moving averages, indicating a bullish trend. We recommend buying Divislab for the target of 1500, keeping SL at 1328.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.