Hold longs in Nifty with stop loss of 18500; Hikal, Nesco bullish on charts

The breadth of the market is bullish as more than 67 per cent of the stocks are trading above their 200 DMA, says Vinay Rajani of HDFC Securities

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Vinay Rajani Mumbai

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Nifty view

Nifty remained in the narrow range of 18,500-18,700 and continued its consolidation on Tuesday. Primary trend of the Nifty is bullish as it is placed above all important moving averages. Breadth of the market is bullish as more than 67 per cent of the stocks are trading above their 200 DMA. Traders are advised to hold longs in Nifty with the stop loss of 18,500. On the upside 18,700 and 18,887 are the next resistance for the Nifty. 

Stock recommendation

Buy Hikal | CMP: Rs 325 | Target: Rs 355 | Stop-loss: Rs 305

The stock price has broken out from multi week consolidation. Breakout is accompanied with jump in volumes. Pharma sector has started outperforming. The stock has recently surpassed its 200 DEMA resistance. Momentum indicators have turned bullish on the daily and weekly charts. 

Buy Nesco | CMP: Rs 644 | Target Rs: 700 | Stop-loss: Rs 600

The stock price has broken out from “Flag” pattern on the daily chart. Primary trend of the stock has been bullish as it has been forming higher tops and higher bottoms on daily charts. It is placed above all important moving averages, which indicates bullish trend on all time frames. 

Disclaimer: Vinay Rajani is CMT (Senior Technical and Derivative Research Analyst) at HDFC Securities. Views expressed are personal. He doesn't hold any position in the above mentioned stocks.

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First Published: Jun 7 2023 | 6:58 AM IST

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