Nifty Outlook and top trading ideas by HDFC Securities

Nifty outlook and top stock picks by Vinay Rajani, Technical Analyst, HDFC Securities:

Nifty Outlook

By closing above 10208, Nifty has confirmed higher top and higher bottom formation for the first time in the recent correction from 11171 to 9951. Nifty has also formed small inverse head and shoulder pattern on the short term chart, indicting the target of 10500. Nifty has managed to surpass the crucial resistance of 20 DMA, placed at 10220. Support is now shifted upward to 10090 from earlier level of 9950.

BUY Pidilite Ind

CMP: Rs 963

Stop Loss: Rs 925

Target: Rs 1030

Stock price has registered new all-time high above 963 with rising volumes. Stock price currently placed above 20, 50, 100 and 200 DMA, indicating bullishness on all time frames. Stock price has been forming higher tops and higher bottoms on the weekly and monthly charts. FMCG sector as a whole is performing very well in the current uncertain scenario. Oscillators like MACD, KST and ADX are showing strength on weekly and monthly charts.  Considering the technical evidences discussed above, we recommend buying the stock between CMP and 940, for the target of 1030, keeping stop loss at 925 on closing basis.

BUY Bata India

CMP: Rs 749

Stop Loss: Rs 725

Target: Rs 790

Stock has given breakout from downward sloping trend line, adjoining major tops on the daily charts. Stock has reversed the trend northward after taking support at its 200 DMA. Stock price has surpassed the crucial resistance of its previous top 741 on closing basis. On 26th March 2018, Stock broke out on the charts followed by consolidation for consecutive four sessions.  Positional setup for the stock is bullish as per moving average and oscillators on the medium term charts. Considering the technical evidences discussed above, we recommend buying the stock between CMP and 730, for the target of 790, keeping stop loss at 725 on closing basis.

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