Nifty outlook and technical calls by Vinay Rajani, Senior Technical Analyst at HDFC Securities.

Above 10924, Nifty could move to 11300

Nifty has been forming lower tops and higher bottoms. This means the movement of the Nifty is getting contracted gradually in the symmetrical triangle. This setup indicates that very soon we would see one-sided move with momentum. Any level above 10924 would lead to higher top preceded by higher bottom and that would trigger the short covering in the index. Above 10924 Nifty could extend its gain towards 11300 target. However, longs should be protected with stop loss of 10628 on closing basis.

Buy Axis Bank at Rs 651

Target: Rs 704

Stop Loss: Rs 620

The stock price has given Symmetrical Triangle breakout on the Daily charts. Higher tops and higher bottoms on the daily and weekly charts. Volumes gradually improving along with the price rise. The stock price has been trading above its 20, 50, 100 and 200 DMA. Oscillators and Indicators setup is bullish. The banking sector is likely to outperform.

Considering the technical evidence discussed above, we recommend buying the stock between 651 and 635 for the target of 704, keeping stop loss at 620 on closing basis.

Buy Action Construction at Rs 101

Target: Rs 114

Stop Loss: Rs 94

The stock is trading at 52% lower than its Jan 2018 High of 204. On the Long term charts stock has turned extremely oversold. For the last 3 months Stock has been trading in a consolidation zone of 85 to 105. In the month of October and December 2018, Stock took support on the upward sloping trend line on the weekly charts. This trend line has acted nicely in the past. On the week ended 4th Jan 2018, Stock broke out from the contracting range on the daily charts with higher delivery percentage and higher volumes. Indicators like MACD and Oscillator like RSI has turned bullish on the weekly charts. The stock price has recently taken support on its 200 Week Exponential moving average and reversed north.

Considering the technical evidence discussed above, we recommend buying the stock at CMP and Average it at 97, for the target of 113, keeping a stop loss at 94 on closing basis.

Disclaimer: The analyst may have positions in any or all the stocks mentioned above.