Nifty outlook and top trading ideas by HDFC Securities

Nifty outlook and technical calls by Vinay Rajani, Technical Analyst - PCG Desk, HDFC securities.

Nifty outlook and technical calls by Vinay Rajani - PCG Desk, HDFC Securities:

Nifty View
 

Nifty ended flat and formed indecisive “Doji” pattern on the daily chart during yesterday’s session to close at 10426. Nifty has shown a recovery of more than 330 points in last four sessions. Nifty managed to hold above its 200 DMA support and reversed northward.  The meaningful resistance from here seems at 10638, which happened to be the intermediate top on the daily charts.

Considering the evidences discussed above, We believe that Nifty could extend this pullback and Longs should be held for the upside target of 10600, keeping SL at 10300.

BUY: Chambal Fert

CMP: Rs 161.10

SL: Rs 155

Target: Rs 168

On 26th Feb 2018, Stock registered new 52 week and all time high with jump in volumes. Stock price has formed multiple bottoms at the similar level of 150 in last 1 month.  Stock price currently placed above 20, 50, 100 and 200 DMA, indicating bullishness on all time frames. Stock is one of the few fertilizer stocks, which is hovering around its all-time high.   Oscillators like MACD, KST and ADX are showing strength on weekly and monthly charts. The level of 150 seems to have become floor for short term trend and recent correction from all time high seems to be an opportunity for traders to initiate fresh longs.  Stock price has recently taken support at its 100 DMA and bounced northward. Considering the technical evidences discussed above, we recommend buying the stock between CMP and 158, for the target of 168, keeping stop loss at 155 on closing basis.  

BUY: India Cement

CMP: Rs 150.50

SL: Rs 146

Tgt: Rs 157

Stocks has surpassed 5 days EMA Resistance with higher volumes. Oscillators like RSI and Stochastic have exited the oversold zone, indicating probable bounce back. Stock price formed bullish double bottom formation at 141.5 odd levels. Bullish hammer candlestick pattern on the daily chart, indicates the probable trend reversal. All cement stock hasve been showing traction for last couple of sessions.

Considering the technical evidences discussed above, we recommend buying the stock between CMP and 146, for the target of 157, keeping stop loss at 146 on closing basis.

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