Nifty Outlook and top trading ideas by HDFC Securities

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

Nifty Outlook

From the bottom of 9951 registered on 23rd Mar 2018, Nifty has risen 6.90% till date. In last two sessions, Nifty has been facing resistance around 10638 levels. Any level above 10638 could extend the upswing towards next resistance of 10705, which happened to be 61.8% retracement.  Nifty has been sustaining above its 100 DMA, and same is likely to provide support at 10462 odd levels. 

BUY SUNPHARMA ADV. RESEARCH

CMP: Rs 425

Stop Loss: Rs 400

Target: Rs 480

Downward sloping trend line breakout is seen on the daily charts. Stock price has broken out from last 8 session’s consolidation. Volumes have been going up along with the price rise for last couple of sessions. Stock price has been trading above 50,100 and 200 DMA, indicating uptrend for short to medium term. Oscillator like RSI and Momentum indicator like MACD on the daily charts have been showing strength. Pharma sector has started showing traction for last couple sessions and looks convincing for the short term.  We recommend buying SPARC for the upside target of 480, keeping SL at 400.

BUY MPHASIS
 

CMP: Rs 982

Stop Loss: Rs 950

Target: Rs 1050

Stock price has registered new all-time high at 1015 and has given a close at 982. Stock has surpassed the crucial resistance of 940 odd levels, which acted as a hurdle earlier in the current year. Stock price has also broken out from rounding bottom formation on the monthly charts. Oscillators like MACD, RSI and DMI have been showing strength in the existing bullish strength. We recommend buying Mphasis for the upside target of 1050, keeping SL at 950.

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