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Auto, PSU stocks to outperform in the short-term: Vinay Rajani of HDFC Sec

Market trend is in the favour of the bulls
Nifty is in continuation of an uptrend. Every dip is getting absorbed by market and momentum has been in the favour of bulls. Support for the Nifty has shifted to 14,450 odd levels and unless that breaches, traders should remain bullish. Auto and PSE good sectors are likely to perform well for the short-term. Immediate resistance for the Nifty is seen at 14,890. Stoploss in longs should be kept on trailing basis.

Stock recommendation:

Buy Coal India (146.85) | Target: Rs 154 | Stop-loss: Rs 141

The stock has formed a 'rounding bottom' formation on the daily chart. Its price has surpassed the previous top resistance of 146 with high volumes and is placed above all important moving averages. Indicator and oscillator setup is bullish on daily and weekly chart.

Buy Powergrid (203.70) | Target: Rs 213 | Stop-loss: Rs 198

The stock price has broken out from last seven week's price consolidation with higher volumes. It is trading near to its all-time high. PSU and Power, both, sectors are outperforming the benchmark indices and the same is likely to continue.  Moving average and oscillator setup is bullish on the daily and weekly charts.


Disclaimer: Vinay Rajani is Technical Research Analyst at HDFC Securities. The analyst doesn't have any holding in the stock. Views are personal.

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