Vinay Rajani recommends Buy on Avadh Sugar, Shree Digvijay Cement
The Nifty has witnessed a correction of more than 300 points from the recent swing high of 18,887. The support for Nifty is seen at 18,442, which happens to be previous swing high on the daily chart. Resistance for the Nifty is seen at 18,730. The primary trend of the Nifty is bullish as Nifty has been holding higher top and higher bottom formation on the daily and weekly charts.
Last close: Rs 548
Target: Rs 583
Stop Loss: Rs 511
The stock has surpassed the crucial resistance of its 200-day EMA on closing basis. The resistance is taken out with jump in volumes. Sugar Sector has started outperforming after long time. Indicators and oscillators have turned bullish on daily and weekly charts.
Shree Digvijay Cement
Last Close: Rs 74.60
Target: Rs 88
Stop Loss: Rs 66
The stock has witnessed a downward sloping trend line breakout on the daily chart. The price breakout is accompanied with rising volumes. The daily chart has also seen formation of Higher tops and higher bottoms, and the stock price is placed above all important moving averages. Further, the cement Sector has started outperforming. Indicators and oscillators have tuned bullish on daily and weekly charts
(Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC securities. Views expressed are personal).
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