Nifty outlook and few trading ideas by HDFC Securities

Nifty outlook and technical calls by Devarsh Vakil & Vinay Rajani - PCG Desk, HDFC Securities:
 
Nifty View: Nifty has been consolidating in the range of 10,400-10,550 for last 10 sessions. Primary trend is still bullish with higher tops and higher bottoms. Previous top on the daily chart is placed at 10,329, which is likely to act as a short term support.  Recent Top formed at 10,545 would remain as a strong resistance. We expect nifty to remain in to consolidation till it breaks the consolidation range of 10,300-10,550 on the either side. However, stock specific bullish trend is likely to continue.

 
Buy TATA POWER
CMP: Rs 99.70

Stop Loss: Rs 95
Target: Rs 110
 
Stock seems to have broken out on the long term charts. Bullish rounding bottom is clearly visible on the short term charts. Power sector stocks have been outperforming for last couple of weeks. Higher tops and higher bottom formation is well intact on the daily and weekly charts. In the initial two session of this week, Stock price brokeout from the consolidation range 88-95 on sustainable basis.
 
Considering the technical evidences discussed above, we recommend buying the stock between 99.70 and 97, for the target of 110, keeping a stop loss at 95 on closing basis. 

 
Buy BHEL
CMP: Rs 98.20
Stop Loss: Rs 94
Target: Rs 105
 
Stock price has recently surpassed the crucial resistance of 200 DMA. Stock has also broken out from long term downward sloping trend line resistance on the daily chart. Capital Goods stock seems to have bottoms out on the short term charts. Oscillators like MACD, DMI and KST have turned bullish on the daily charts. Volumes have been going up along with the price rise for last 3 sessions, indicating strength in the counter.
 
Considering the technical evidences discussed above, we recommend buying the stock between 98 and 96, for the target of 105, keeping a stop loss at 94 on closing basis. 

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