Nifty outlook and key trading ideas by HDFC Securities

Stoploss in Nifty longs should be kept at 10,170 on closing basis, says HDFC Securities

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

Nifty View:

In the current Week, Nifty surpassed the crucial resistance of 10,350 and sustained above it. Nifty has broken out from the downward sloping trend line on the daily charts. Recently, Nifty has formed higher bottoms followed by higher top on the daily chart, indicating bullish trend reversal. Nifty is currently placed above 10, 20, 50, 100 and 200-DMA, indicating bullish trend on all time frames. Oscillators like ADX, KST and MACD have turned bullish on the short term charts.  Targets for Nifty are seen at 10530 and 10855. Stoploss in Nifty longs should be kept at 10,170 on closing basis. 

Buy Veto Switchgears

CMP: Rs 246.35

Stoploss: Rs 235

Target: Rs 265

Stock price has closed at its all-time high with significant jump in volumes. Price is trading above all important moving averages, indicating uptrend on all time frames. Stock price has recently surpassed the crucial resistance of triple top placed around 237. Primary trend has been bullish with higher tops and higher bottoms. Oscillators like MACD, ADX and KST are indicating bullish trend for the stock. Considering the technical evidences discussed above, we recommend buying the stock between Rs 246.35 and Rs 240, for the target of Rs 265, keeping a stop loss at Rs 235 on closing basis.  

  

Buy Genus Power

CMP: Rs 74.70

Stoploss: Rs 71

Target: Rs 82

Stock price has been forming higher tops and higher bottoms on its daily and weekly charts. Short term moving averages are trading above long term moving averages. The stock is on the verge of closing at its highest levels on the monthly charts. Volumes have been rising along with the price rise for last 5 months. Oscillators are also indicating bullish trend for the stock. Considering the technical evidences discussed above, we recommend buying the stock between Rs 74.70 and Rs 72, for the target of Rs 81, keeping a stop loss at Rs 71 on closing basis. 

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