Nifty outlook and top trading calls for today's trade: HDFC Securities

Buy Tata Global, Atul Auto, says Devarsh Vakil & Vinay Rajani of HDFC Securities

Nifty outlook and top trading ideas by Devarsh Vakil & Vinay Rajani, technical analysts (PCG desk) at HDFC Securities:

Nifty Outlook

Nifty has seen a sharp fall of more than 380 points (3.75%) from 10,178 to 9,797 in the span of last six sessions. Nifty has violated the crucial support of 10, 20 and 50-DMA in the last three sessions. Next support for the Nifty is seen at around its 100-DMA, which is placed around 9,730. Previous bottom on the daily chart is seen at 9,685, which can also act as a support. Primary trend of the Nifty is bullish, but short term trend has turned negative. It would be advisable for traders not to initiate aggressive longs unless nifty surpasses the resistance of 10,000. 

Buy Atul Auto

CMP: Rs 471

SL: Rs 448

Tgt: Rs 520

Stock price has broken out from the symmetrical triangle on the long term weekly charts. Short-term moving averages have started surpassing long-term moving averages. Stock has started forming higher tops and higher bottoms, indicating bullish momentum. Oscillators have been showing strength on short to medium term charts. Stock price has corrected recently with relatively lower volumes, indicating short term correction in overall uptrend. Considering the technical evidences discussed above we recommend buying the stock between Rs 471 and Rs 455, for the target of Rs 520, keeping stoploss at Rs 448.

Buy Tata Global

CMP: Rs 204.65

SL: Rs 194

Tgt: Rs 220

In the month of August 2017, stock broke out from crucial double top resistance placed at Rs 174. In the current month, stock registered multiyear high at Rs 220 followed by the correction towards Rs 192 in the span of just five sessions. During the correction volumes were relatively lower, indicating lake of bearish momentum. On 26th Sep, 2017, Stock resumed its uptrend with the price rise of more than 4% along with the higher volumes. Considering the evidences discussed above, we recommend buying the stock between Rs 204.65 and Rs 198, for the target of Rs 220, keeping stoploss at Rs 194.

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