Here’s why Vinay Rajani recommends buying HG Infra, Kaveri Seeds
Nifty: Strong support Seen at 17,442
Since the recent high of 18,114, the Nifty has seen a correction of 672 points. On April 12, 2022, the index found support at its previous high of 17,442 and then rallied. The 20-day EMA support for the Nifty is placed at 17,450 levels. Nifty longs should be held with 17,442 stop losses. A break below 17442 could extend the correction towards the next support at 17000. On the upside, 17842 and 18100 would act as resistances.
BUY – HGINFRA
Objective: Rs 665
Stop Loss: Rs 600
Last close: Rs 624
The stock broke out of its descending trendline on the daily chart. The breakout in prices is accompanied by a jump in volume. The stock broke above the crucial previous swing resistance at Rs 620. The daily RSI broke above the 50 benchmark level, indicating increasing momentum.
BUY – KAVERI SEEDS
Objective: Rs 670
Stop Loss: Rs 590
Last close: Rs 615
A breakout of the downward sloping trendline is visible on the weekly charts. The price breakout is also accompanied by a jump in volume. This stock broke the previous maximum resistance of Rs 585 on the weekly chart. The stock is now placed above all important moving average parameters.
(Vinay Rajani, Technical Research Analyst, HDFC Securities. Opinions expressed are personal).