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

Few trading ideas by Devarsh Vakil & Vinay Rajani, PCG desk, HDFC Securities: 

Nifty View

Nifty has recovered 265 odd points from the bottom of 10094 registered on 15th Nov 2017. Yesterday, Nifty managed to surpass the hurdle of the top 10343 formed on 17th Nov 2017, the day when Moody upgraded the India’s rating.  Nifty has got strong support around 10200 and it would be advisable to hold long positions for the upside target of new all time high above 10490. Stoploss for Nifty longs remains at 10200 on closing basis.

Buy TATA ELXSI
 

CMP: Rs 932

SL: Rs 890

Tgt: Rs 1000

Stock price has recently registered new 52-week high at Rs 945. Stock has surpassed previous top resistance of Rs 922 on closing basis and with higher volumes. Primary trend of the Stock is bullish with higher tops and higher bottoms. Stock price is placed above all important moving averages, indicating bullishness on all time frame. Midcap IT companies have been showing traction for last couple of months. Company has also posted good Q2FY18 Results, which raises the confidence in initiating long positions from current price.

Considering the technical evidences discussed above, we recommend buying the stock between Rs 932 and Rs 910, for the target of Rs 1000, keeping a stoploss at Rs 890 on closing basis.  

Buy CEAT
 

CMP: Rs 1839

SL: Rs 1750

Tgt: Rs 1980

Stock price has broken out from the long consolidation on the charts by closing above 1830. Volumes were higher during price breakout. Oscillators like MACD and RSI have started showing strength on the short to medium term chart. Falling rubber prices in the international markets are expected to help the Indian tyre companies.

Considering the technical evidences discussed above, we recommend buying the stock between Rs 1839 and Rs 1790, for the target of Rs 1980, keeping a stoploss at Rs 1750 on closing basis.

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