Trading strategy in Nifty on the Budget Day by Vinay Rajani

Among individual stocks, the technical & derivative analyst from HDFC Securities recommends Buy on RCF and Triveni Engineering.

Nifty View

The Nifty recovered well from the lows of Tuesday morning. It also made a higher low compared to the previous session. We have the Union Budget on Feb 01.

The Nifty could stay in the 17,542 - 17,760 band in the near term. Breaches of this band may be fleeting on the Budget day. Volumes and sustenance below/ above these levels will be crucial to watch out for.

BUY

Triveni Engineering

Last close: Rs 286

Target: Rs 325

Stop Loss: Rs 260

The stock has formed double bottom reversal pattern at Rs 260 and turned north. The stock has also been finding support at 200-DEMA. RSI on the daily chart has given bullish breakout from downward sloping trend line.

The sugar Sector has started outperforming after witnessing running correction. The stock is placed above its 50-, 100- and 200-DMA, indicating bullish trend on all time frames.

BUY

RCF

Last close: Rs 122

Target: Rs 135

Stop Loss: Rs 111

A Bullish Morning Star candlestick pattern is seen on the daily chart. Bullish price pattern is formed with jump in volumes.

The stock has surpassed 10 days EMA resistance on January 31, 2023. The stochastic oscillator has exited the oversold zone, indicating bullish trend reversal.

The primary trend of the stock is bullish as it is holding above long term moving average of 200 DMA.

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