Vinay Rajani of HDFC Securities sees support for Nifty around 17,400-17,150

Among individual stocks, the technical analyst is bullish on HG Infra and CreditAccess Grameen.

Nifty View

The Nifty has been consolidating in the range of 17,400-17,600 for last few sessions. The index made a short term top at 17,778 on August 30, 2022 and that becomes the near term resistance for Nifty.

For confirmation of medium term uptrend resuming, the Nifty has to surpass the 17,800 resistance. On the downside 17,400 and 17,150 are crucial supports to watch out for.

BUY

HG Infra

Last close: Rs 622

Targets: Rs 670, Rs 730

Stop Loss: Rs 590

The stock has broken out from the “Flag” pattern on the daily chart. The price breakout is accompanied by rising volumes and the stock is placed above 20, 50 and 200 days EMA, which indicates bullish trend on all time frame.

BUY

CreditAccess Grameen

Last close: Rs 1052

Targets: Rs 1,177, Rs 1,240

Stop Loss: Rs 982

The stock has broken out from the symmetrical triangle on the daily chart. The price breakout is accompanied with jump in volumes. The stock has also broken out from the consolidation, which held for previous 10 trading sessions and is placed above its 20,50, 100 and 200 DMA, which indicates bullish trend on all time frames.

Indicators and oscillators like DMI and MACD have been showing strength in the current uptrend. Further, the finance Sector has been outperforming and same is expected to continue.

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