Nifty outlook and top trading ideas by Jay Anand Thakkar of Anand Rathi

Nifty has again started to form higher tops and bottoms and has finally provided a breakout from the crucial swing resistance of 12,040 levels

NIFTY: BUY | TGT 12,300 | SL: 12,000

Nifty closed in the positive territory and, as anticipated in the last trading session, the Index has again started to form higher tops and bottoms. It has also provided a breakout from the crucial swing resistance of 12,040 levels. The hourly momentum indicator MACD has come back into the buy mode which is quite positive and the Index is inching towards the upper end of the rising wedge pattern i.e. towards 12,300 levels.

AU SMALL FINANCE BANK:  BUY | TGT: Rs 860 | SL: Rs 802

The stock has provided a breakout from the symmetrical triangular pattern that was formed in its wave 4. The daily as well as weekly momentum indicator MACD is well in buy mode. Hence, we recommend buying this stock for the target of Rs 860 with a stop loss of Rs 802.

PIRAMAL ENTERPRISES LIMITED: BUY | TGT Rs 1,950 | SL: Rs 1,800

The stock has provided a breakout from the rectangular pattern that was formed on the hourly charts. The daily MACD is well in the buy mode indicating that the probability of the stock achieving its target is quite high.