Wednesday 27 June 2018

Technical calls for the day by HDFC Securities: Buy ITC, Bata India

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Stock Market - Nifty outlook and top stock ideas by Vinay Rajani, Technical Analyst, HDFC Securities:

Nifty View
Nifty continued to remain in the narrow range of 10700-10850. Any level above 10850 would confirm bullish breakout from the symmetrical triangle, while close below 10700 would confirm bearish reversal on the charts. Advance decline ratio has been negative for last 10 days, indicating weak market breadth. Any level above 10850 would push Nifty towards next target of 11020 in Nifty. Close below 10700 could extend the fall towards far support of 10550.

ITC Stock Price
CMP: Rs 264.80
Target: Rs 256
Stop loss: Rs 278
From the recent top stock price has corrected 9%. Stock price has reached long term support derived from upward sloping trend line on the charts. Oscillators like RSI and stochastic looks oversold on the short to medium term charts. When most of the large cap, heavy weighted FMCG stocks are not that far from their all time and 52 week highs, ITC is placed 28% from its all time high of 367, throwing good opportunity to accumulate.

We recommend Buying ITC for the target of 278, keeping SL at 256.

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