Nifty outlook & inventory calls by Anand Rathi: Buy Bajaj Auto, Relaxo Footwear

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BUY NIFTY | TARGET: 11,500 | STOP LOSS: 11,250


The Nifty index witnessed profit booking at higher levels and has reached the a very powerful toughen of a rising trend line which acted as a major toughen zone. So, so long as it respects this rising trend line, one can take a contra bet on the index with the expectation of a pullback towards 11,500 levels. The momentum indicators and oscillators on the weekly scales are still in buy mode which hints of a few buying at lower levels. The volatility index “India VIX” jumped more than 25% to end close 23 levels, so caution is advised as the markets are likely to be volatile.


BUY RELAXO | TARGET: Rs 700 | STOP LOSS: Rs 640


The inventory had earlier breached a multi-month downward sloping trend line on the higher side. Now, it has respected the breakout and has retrieved sharply from the same. The volume has also picked up from the past couple of sessions. The momentum indicator and oscillator are on buy mode on the day-to-day in addition to a weekly scale which hints of further positive momentum in the counter.


BUY LTTS | TARGET: Rs 1,600 | STOP LOSS: Rs 1,530


The inventory has formed a bullish candle and has surpassed its preceding three day’s high. It is usually taking the toughen of a rising trend line connecting all of the recent lows. It is trading polite above its 200-day moving averages. The momentum indicators and oscillators are very polite in the buy mode on the weekly scales which hints of a further positive momentum in the counter.


SELL BAJAJ AUTO | TARGET: Rs 2,880 | STOP LOSS: Rs 3,000


The counter has formed a triple top and also given a breakdown from a rising trend line on the day-to-day chart. It also breached its short term 21-DMA which used to be placed at 3020 and now it’ll act as a major resistance. The RSI is making a lower top and lower backside formation on the day-to-day chart which hints of further weakness in the counter.

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Disclaimer: Nilesh Jain is Technical and Derivatives Research analyst at Anand Rathi Shares and Inventory Brokers. He may have positions in one or the entire above mentioned stocks. Views are personal.

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