Buy Petronet and DHFL, says Chandan Taparia of Motilal Oswal

Here are a few trading ideas by Chandan Taparia, Derivatives and Technical Analyst & PFA at MOSL:

Outlook:

Nifty index has been making lower highs from last three trading sessions and formed a Bearish Belt Hold candle on the daily chart. It has broken immediate support of 9,218-9,191 zone and hovering near to its 13 Day Exponential moving average. Now if it sustains below 9,191 then selling pressure may drag the index towards next support of 9,133 and 9,090 levels while on the upside immediate hurdles are seen at 9,250 and 9,280.

Stocks:

Petronet LNG

Reco: BUY

Last Close: 415

Stop Loss : 405

Target : 430

It has given the highest daily close and supports are gradually shifting higher which has bullish implication. It has taken multiple support near to Rs 403 and a small follow could lead it towards fresh momentum as it is trading at life time high territory. Thus, recommending to buy with the trading stop loss of 405 for a potential upside target of 430.

Dewan Housing Finance Corporation

Reco: BUY

Last Close: 384

Stop Loss : 370

Target : 410

Higher top – higher bottom formation on weekly chart and supports are gradually shifting upward. A small decline could provide a fresh buying opportunity to ride the next up move.

Chandan Taparia is a Deivatives and Technical Analyst at Motilal Oswal Securities.