Nifty can target 16,650 in the short-term, says Vinay Rajani

The technical analyst from HDFC Securities also recommends buying CCL Products and Torrent Pharma.

Nifty View

The Nifty has been forming higher tops and higher bottoms on the daily charts, which indicates short term uptrend. The previous swing high is placed at 15,927, which can act as reversal point in the current running correction on the Nifty. 

Historically, the month of July is the second best performing month after December, if we were to go by the trend seen in last 29 years of benchmark Index.

The strategy for the coming sessions should be to accumulate longs on dips. The Nifty should be held long with a stop loss at 15,800. On the upside, the Nifty could target 16,650 in the short-term.

CCL Products
BUY
Buy Range: Rs 402.50 - Rs 390
Targets: Rs 440, Rs 460
Stop Loss: Rs 380

The stock has broken out from the downward sloping trend line on the daily line chart. The price breakout is accompanied with rising volumes.

The stock price has recently surpassed its 50- and 200-day EMA resistance. The stock price has also broken out from “Pennant” pattern on the daily chart. Higher top and higher bottom 
formation on the daily chart.

Indicators and oscillators have turned bullish on the daily and weekly chart. The stock can be bought in two tranches one at CMP and second at Rs 390, for targets of Rs 440 and Rs 460, keeping a Stop Loss at Rs 380.

Torrent Pharma
BUY
Buy Range: Rs 1,483 - Rs 1,435
Targets: Rs 1,560, Rs 1,600
Stop Loss: Rs 1,420

The stock price has surpassed the previous swing high resistance and is currently trading above its 20, 50 and 200 DMAs.

The pimary trend of the stock is bullish with higher tops and higher bottoms on weekly charts. Further, +DI has crossed -DI on the upside on daily charts, which indicates short term trend reversal.

The daily RSI has been rising and has reached above benchmark level of 50. The stock can be bought in two tranches one at CMP and second at Rs 1,435, for targets of Rs 1,560 and Rs 1,600, keeping a Stop Loss at Rs 1,420.

(Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC securities. Views expressed are personal).