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Nifty50 trend bullish; Nocil, GSFC top technical calls for December 20

Nifty continues to remain in a bullish trend and holding longs with trailing stoploss is the ideal strategy, says Vinay Rajani

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Vinay Rajani Mumbai

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Nifty View

Nifty recovered 168 points from the day’s low of 21,337 and hit a fresh all time high of 21,505 on Tuesday. Nifty ended the session off the highs and settled with 34 points gain at 21,453.

Nifty continues to remain in bullish trend and holding longs with trailing stoploss is the ideal strategy. 5 days EMA is placed near 21,300 and same is expected to act as a support going forward.

Resistance for the Nifty is seen in the zone of 21,500-21,600, where call writing has been happening in the derivative side.

Buy Nocil | CMP: Rs 273.80 | Target: Rs 2,943 | Stop-loss: Rs 258

The stock price has broken out from downward sloping trend line on the weekly chart. It is placed above all important moving averages, indicating bullish trend on all time frames.

Indicators and Oscillators like DMI and RSI have turned bullish on the daily charts. Price breakout is accompanied with a jump in volumes. The chemical sector has started outperforming.

Buy GSFC | CMP: Rs 230.65 | Target: Rs 270 | Stop-loss: Rs 206

The stock price retraced back to the previous breakout level and has shown throwback. It is placed above all important moving averages, indicating bullish trend on all time frames.

Indicators and Oscillators like DMI and RSI have turned bullish on the daily charts. Price breakout is accompanied with jump in volumes. Fertilizer sector has started outperforming. 

Disclaimer: Vinay Rajani is CMT, Senior Technical & Derivative Analyst, HDFC Securities. Views are his own. He does not have any holdings in the stocks above. 

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First Published: Dec 20 2023 | 7:58 AM IST

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