Buy Rites, Gujarat Alkalies for up to 16% rally, recommends HDFC Securities

Convenient view

The Nifty broke its three-session losing streak by closing with a gain of 80 points. Nifty has formed higher highs and higher lows on the daily chart, indicating a bullish trend. The recent swing low was recorded at 19,635 and the same should be kept as stop loss while trading long positions of Nifty.

TO BUY

Rites Ltd

Last closing: Rs 503.60

Target: Rs 585

Stop loss: Rs 457

The stock price has found support near the 20-day EMA for the past many sessions. The stock price has left the downward trend line on the daily chart. The price breakout is accompanied by a jump in volumes.

The stock price is above the 20, 50 and 200 DMA, indicating a bullish trend over the entire time frame. Indicators and oscillators such as MACD and RSI have turned bullish on the daily charts.

TO BUY

Gujarat alkalis

Last cutoff: Rs 791

Target: Rs 850

Stop loss: Rs 720

The stock price has left the descending triangle on the daily chart. The price breakout is accompanied by a jump in volumes. The stock price is above the 20, 50 and 200 DMA, indicating a bullish trend over the entire time frame.

The stock is making higher highs and higher lows on the weekly charts. Indicators and oscillators such as MACD and RSI have turned bullish on the weekly charts.

(Vinay Rajani, CMT, Senior Technical & Derivative Analyst, HDFC Securities. Opinions expressed are personal).