Nifty outlook and technical calls by Devarsh Vakil & Vinay Rajani – PCG Desk, HDFC Securities:
Nifty View: In last 7 sessions, Nifty has seen a total fall of 900 odd points, which 8% from the all-time high of 11,171 to 10,276. Technical setup for all global markets turned bearish in the last 7 sessions. Bearish momentum has gone up significantly with volatility Index, VIX reaching almost at 1 year high. Mid-cap and Small-cap indices have already seen a plunge of 14% and 19% respectively from their 1 month high. There are many large-cap stocks which have seen healthy correction of more than 30% from the 3 month’s highs. So, at these levels, we should not rule out the possibility of the bounce back in few oversold stocks. Nifty has got strong support of its 200 DMA, which is currently placed at 10,000 odd levels, while resistance is placed at 10,700. Buy NMDC CMP: Rs 127.8 Stop Loss: Rs 121 Target: Rs 138 Stock price has witnessed a fall of 24% from its 1 month high. Stock looks oversold on the short term charts.
Stock closed around strong support of its 200 DMA. Primary trend of the stock has been bullish with higher tops and higher bottoms on the monthly charts. Considering the technical evidences discussed above, we recommend buying the stock between 128 and 124, for the target of 138, keeping a stop loss at 121 on closing basis. Buy FederalBank CMP: Rs 93 Stop Loss: Rs 87 Target: Rs 103 Stock price has witnessed a fall of 32% from its 6 month’s high. Stock looks oversold on the short term charts. Stock price has reached the crucial support of its previous top on the weekly charts. Stock price has also tested the neckline support of bullish inverse head and shoulder on the monthly charts, indicating probable bounce back. Primary trend of the stock has been bullish with higher tops and higher bottoms on the monthly charts. Considering the technical evidences discussed above, we recommend buying the stock between 93 and 89, for the target of 103, keeping a stop loss at 87 on closing basis. Disclaimer: The analyst may have positions in any or all the stocks mentioned above.
First Published: Wed, February 14 2018. 08:17 IST