Nifty Outlook and top trading ideas by CapitalVia Global Research Limited

Technical calls by Gaurav Garg, Head of Research at CapitalVia Global Research Limited -Investment Advisor

Nifty View:
 

The Nifty traded amid high volatility but recovered from lower levels and its weekly low of 10,848. This move seems to be due to some sort of relief that is anticipated by revision of surcharge on FPIs which in turn will push markets towards 11,000 mark. The index closed at 10,997.40 in line with the same. Now, 11,000 will act as a make-or-break level for the upcoming week. Volatility index, IndiaVIX, is seen to rebound from lower levels and settle at around 15. This suggests more volatility and thus a reversal can be expected. Niftybank managed to rebound from 28,000 level which shall also act as a base for the next week, and closed at 28,205. As per Option data, Nifty has witnessed put writing at 11,000 strike along with 10,900 which are clear supports level along with call writing at 11,100 which will act as immediate resistance.
 

In the coming week, we can see a big movement in FMCG stocks:

Buy Tata Global Beverages (Above Rs 270):

Target: Rs 288

Stop loss: Rs 245
 

The stock has formed a bullish flag pattern on daily charts, after consolidating for a few weeks and now it is showing a potential breakout opportunity from the 270 levels. The level above 270 would result in MACD bullish crossover on the daily charts. Moving average setup is appearing bullish on the short-and medium-term charts.

Considering the technical evidence discussed above, we recommend buying the stock above Rs 270 for the target of Rs 288, keeping a stop loss at Rs 245 on closing basis.

Buy Hindustan Uniliver Ltd. (above Rs 1,754):

Target: Rs 1,825

Stop loss: Rs 1,706
 

The stock is trading in a range despite market’s movements. HUL is witnessing a major moving average crossover which should result in strong bullish movement. The script is trading above all important moving averages currently.

Considering the technical evidence discussed above, we recommend buying the stock above Rs 1,754 for the target of Rs 1,825, keeping a stop loss at Rs 1,706 on closing basis.

Disclaimer: The analyst does not hold positions in any of the stocks mentioned above