Lighten the commitments if Nifty breaks below 10,050: HDFC Securities

Nifty outlook and key trading ideas by Devarsh Vakil & Vinay Rajani - PCG Desk, HDFC securities:

Nifty View:

On Tuesday, the Nifty formed “Doji” Candlestick pattern, indicating indecision in the existing trend. The level of 10,070 is the crucial support in Nifty, which is nothing but the support provided by trend line, adjoining major tops and bottoms on the daily charts. Yesterday, Sensex actually formed double bottom at 32,682, which also happened to be the bottom formed on November 15, 2017. However, we also believe that the level of 10,300 should act as a strong resistance and unless Nifty closes above that, one should remain cautious.

Buy HSIL

CMP: Rs 504

Stoploss: Rs 480

Target: Rs 545

Rounding bottom on the monthly charts, Moving average setup, Oscillator setup, Peak and trough setup and Volume setup all are showing bullish trend in the counter. Sanitary-Ceramic industry likely to perform well in the coming months due to affordable housing initiative and higher spending by government on infrastructure sector.

Considering the technical evidences discussed above, we recommend buying the stock between Rs 504 and Rs 490, for the target of Rs 545, keeping a stoploss at Rs 480 on closing basis.  

Buy AEGIS LOGISTICS

CMP: Rs 245.80

Stoploss: Rs 232

Target: Rs 262

Stock price has broken out from last 10 week’s consolidation range of Rs 220-240. Volumes during price breakout were significantly higher indicating strength in the trend. Primary trend of the stock has been bullish with higher tops and higher bottoms. Oscillators are also indicating bullish trend for the stock. Short term moving averages are trading above long term moving averages, indicating bullish trend on all time frames. Considering the technical evidences discussed above, we recommend buying the stock between Rs 245.80 and Rs 236, for the target of Rs 262, keeping a stoploss at Rs 232 on closing basis.

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