Here’s why Vinay Rajani is bullish on Exide Industries, Tata Motors DVR

Clever view

The Nifty rose for the 6th straight session on Tuesday, closing at 17,825. The position trend on the Nifty is bullish as it held a higher upper and lower formation on the daily chart.

Nifty’s next resistance lies at 18,114, which happens to be the previous swing high on the weekly chart.

Long positions should be held with the trailing stop loss of 17,600 on a closing basis.

TO BUY

Exide Industries

Purchase range: Rs 164.25 – Rs 159

Objectives: Rs 178, Rs 190

Stop-loss: Rs 156

The stock broke out of the descending channel on the weekly line chart. The breakout is accompanied by a rise in volumes.

Indicators and oscillators turned bullish on the weekly chart. The action has formed up and down on the daily chart.

TO BUY

Tata Motors DVR

Purchase range: Rs 240.65 – Rs 234

Objectives: Rs254, Rs 263

Stop-loss: Rs 230

The stock broke through the crucial double top resistance placed at odd levels of Rs 236. The stock also broke after the price consolidation of the last 5 weeks with rising volumes.

The stock is placed above all major moving averages, indicating a bullish trend over all time frames. The automotive sector outperformed and is expected to continue over the next few weeks.

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

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor

Leave a Comment

Your email address will not be published.