Hold longs in Nifty with a stop loss of 10,238: HDFC Securities

Nifty outlook and top trading ideas by Vinay Rajani, Technical Analyst, HDFC Securities:
 
Nifty Outlook
 
From the recent bottom of 9951, Nifty has risen 474 odd points, to close at 10402. A 50DMA and 100DMA are currently placed at the same level of 10438 and the same is likely to act as an immediate resistance for the Nifty. Previous top on the Nifty is placed at 10478, which can also act as a resistance. Therefore, the range of 10430-10480 would be considered as a strong resistance zone. As far as support is concerned, 10238, the 20DMA is likely to act as a short term support.

 

BUY KEI Industries
CMP: Rs 435.50
Stop Loss: Rs 415
Target: Rs 465
 
Stock has closed at its 52 week and all time high with healthy volumes. Stock has been trading above all important moving average parameters, indicating bullish trend on all time frames. Stock has recently surpassed the crucial resistance of the double top placed at 423 on the weekly charts. Higher tops and higher bottoms are intact on long term charts Oscillators like MACD, RSI and DMI have been showing strength in the existing bullish strength. We recommend buying KEI for the upside target of 480, keeping SL at 402.

 
BUY KNR Construction
CMP: Rs 311.35
Stop Loss: Rs 295
Target: Rs 340
 
Infra and construction stocks have been gaining traction for last couple of months. KNR is one of the stocks which remained resilient in the recent correction started since Jan 2018. Stock price has broken out from narrow range of 208-300, which held for last 5 weeks.  Stock price has recently surpassed the crucial resistance of its 20, 50 and 100 DMAs.   Oscillator setup on the short term charts is favors the fresh entry in the counter. We recommend buying KNR Construction for the upside target of 340, keeping SL at 295.

 
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.