Expect downside supports on Nifty within 9,350-9,320 zone: Chandan Taparia

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

Outlook :

Nifty index opened positive and made a new record life time high of 9,450. However it failed to continue its momentum and by the close it corrected towards 9,410. Index has formed a small bearish candle on the daily chart as it fell down from its opening levels. Now it has to continue to hold above 9,380 zone to witness an up move towards 9,450 and 9,500 while on the downside supports are seen at 9,350 and 9,320.

Stocks:

STATE BANK OF INDIA
 

Reco: BUY

Last Close: Rs 298

Stop Loss : Rs 295

Target : Rs 310

'The stock has been holding its multiple support at previous swing high at Rs 295. The overall trend is in a strong bull grip and the sideways action over last several days resembles a flag pattern. As per the recent price set up, we are expecting an up move towards Rs 310 over the next comings days.

BAJAJ FINANCE

Reco: BUY

Last Close: Rs 1339

Stop Loss : Rs 1320

Target : Rs 1380

It has been making higher top-higher bottom formation on weekly chart and just few points away from its life time high territory. We are suggesting to buy for its fresh breakout for the upside target of Rs 1380.

ASHOK LEYLAND

Reco: BUY

Last Close: Rs 86

Stop Loss : Rs 83

Target: Rs 92

'The stock has strongly bounced back from it multiple support of 82-83 and formed a Bullish Reversal pattern on the daily chart. The long green candle for the day scale points out towards higher prices and thus this stock is recommended as a buy at current levels for a potential upside target of 92 with a stop below 83.

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