Read more about Top trading ideas by Anand Rathi Shares: Buy LIC Housing Finance, HDFC Life on Business Standard. In the past couple of sessions, the stock of LIC Housing Finance has consolidated near the previous high, indicating strong hands accumulating the counter at higher levels
Despite the recent recovery from the last week s low, Nifty is still having bearish formation of lower top and lower bottom formation on the daily charts. Unless Nifty closes above 15,180, trend would be considered bearish. However, the trend of midcap and smallcap stocks has been strong and stock specific bullishness is likely to continue. Supports for the Nifty are seen at 14,760 and 14,638.
Stock recommendation:
BUY Torrent Power (390) | Target: Rs 420 | Stop-loss: Rs 370 The stock registered new all-time high in February 2021 by surpassing the multi-month consolidation. Volumes went up significantly during the price breakout. Power sector, too, has been outperforming for last one month and the trend is likely to continue in the coming days. The stock price is forming higher tops and higher bottoms. Besides, the stock has been trading above all important moving average parameters. Indicators and oscillators like RSI, MACD and DMI have turned bullish on short term charts.
The Nifty50 index has breached the crucial support of 14,753, which happened to be the previous top on the daily Chart. It has also violated the supports derived from 5, 10 and 20 days SMA. RSI oscillator has also exited overbought zone with negative divergence on the daily chart. However, we can not rule out the stock specific bullish moves. Current market setup is offering trading opportunities in both directions. As far as Nifty is concerned 15,000-15,100 is a zone, which should be utilized to lighten the trading long commitments. Support for the Nifty is seen at 14,336 odd levels, where 50 days EMA is placed.
Read more about Trading tips by Ajit Mishra of Religare Broking: Buy HPCL, Petronet NLG on Business Standard. Hindpetro has witnessed a strong rebound after forming a base above the support zone of moving averages ribbon on multiple time frames
Buy IOC Feb 100 Call at Rs 2.30 & simultaneously sell Feb 105 Call at Rs 0.95 Lot Size 6500 Maximum profit Rs 23725 If IOC closes at or above 105 on 25 Feb expiry. Breakeven Point Rs 101.35
Rationale: Long build up was seen in the IOC Futures’ where we have seen 12 per cent (Prov) rise in the Open Interest with price rising by 4 per cent. The stock price has broken out on the daily chart (Adjusted for dividend) where it closed at highest level since March 2020 with higher volumes Plus DI has crossed the Minus DI, indicating strength in the current uptrend The primary trend of the stock is positive where it is trading above its all-important moving averages.