Nifty Bank index may outperform in the days ahead: Sacchitanand Uttekar

Market outlook and stock picks from Tradebulls

Here are two stock ideas and market outlook from Tradebulls:

Nifty Outlook

Fresh highs with sustained up move highlight the ongoing strength in the trend. Though Nifty remained confined within its previous day’s session for most part of the day, the sequence of higher lows remained intact. 

A breach above 9640 could extend the rally towards 9740 while a sustained breach below its previous day’s low of 9570 would distort the ongoing sequence. Momentum traders could retain their longs with a trailing stop below 9570 while aggressive bets /leverage longs near the extremes of the range should be avoided from here on. 

Nifty Bank index could continue its outperformance in the coming sessions as its constituents continue to display strength.

Stocks

1. Stock Name             :  PNB

Reco.                           :  BUY

CMP                             :  150.50

Stop Loss                     :  143

Target                         :  172

Positive sector outlook & occurrence of a ‘Morning Star’ formation near its 200 days EMA augur well for a reversal. Traders could be participate the expected reversal with a stop below 143 on a closing basis & add longs for a move towards 172.

2. Stock Name             :  UNICHEM LAB

Reco.                           :  BUY

CMP                             :  248.4

Stop Loss                     :  232

Target                         :  300

Unichem Labs has been oscillating within the channel range of 240-300 for almost a year now. Recent occurrence of an ‘Engulfing Bullish’ formation near the lower end of the range presents an opportunity for trading longs. Fresh longs could be considered with a stop below 248.40 with a stop below 232 for an oscillation back towards the upper end near 300.

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CMP, Stop Loss and Target in Rs

Sacchitanand Uttekar, AVP – Technical (Equity) at Tradebulls. He may / may not have position(s) in the stocks mentioned