Vinay Rajani from HDFC Securities shared his thoughts on the Nifty index. He noted that there’s strong support at 23,460, which is the last low point. This means that if you are buying Nifty stocks, you should set your stop-loss at this level.
Currently, both Nifty and Bank Nifty are trading within a narrow range. The recent rise in prices is mainly due to short covering, which happens when traders buy back the stocks they had sold short. Rajani mentioned that even though the Nifty has gained 110 points recently, it is just a small bounce back from a previous drop.
He indicated that while the main indices may stay stable or move sideways, some individual stocks are performing well. Sectors like healthcare, pharmaceuticals, and some auto industries are showing good movements. Rajani highlighted that stocks like UPL, Chambal Fertilisers, and Navin Fluorine have been showing promising signs. He advised to look for stocks that can succeed even when the overall market isn’t moving much.
For Bank Nifty, he pointed out that there’s strong resistance between 50,500 and 50,600, which might limit its upside. He encouraged looking for stocks that outperform during this period.
On Specific Stocks:
Rajani discussed UPL and Navin Fluorine, noting their recovery over the last few days. He suggested that they have a solid setup but may need a correction before moving higher. For those interested, he recommended buying these stocks on dips.
Turning to Reliance, he noted that the stock is struggling but still has potential, especially with rising crude oil prices. He expressed a cautious optimism, suggesting a stop-loss at 1,200 for those holding Reliance shares.
Recommendations:
Rajani offered two stock picks:
1. Narayana Hrudayalaya (NH): This hospital stock is looking strong. Buy it around 1,349, with a stop-loss at 1,320 and a target of 1,425.
2. Pfizer: This pharmaceutical company looks good too. Buy it around 5,360, with a stop-loss at 5,200 and a target of 5,600.
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