Nifty outlook and top trading ideas for today's trade: Motilal Oswal

Few trading ideas by Chandan Taparia, Derivative & Technical Analyst at Motilal Oswal Securities:

Nifty Outlook:

Nifty index continued its formation of higher highs – higher lows for seventh consecutive session and headed towards 10,050 zones. It closed above its 61.80% retracement of the entire down leg from 10,178 to 9,687 and thus making the way to head towards new high territory. It formed a Doji candle for second day in a row and this candle suggests that Bulls and Bears are fighting hard near 10,000 mark. Now it has to continue the formation of higher lows to extend the move towards 10,080, and then 10,150 zones, while on the downside support is seen at 9,980 then 9,950 levels.

Stocks:

ASHOK LEYLAND

Reco: BUY

Last Close: Rs 126

Stop Loss: Rs 123

Target: Rs 132

Ashok Leyland is in a strong uptrend and is trading at new high territory. We have also seen buying interest in entire auto sector which also favours the positive stance of the counter. Price has been consolidating near its higher zones in a narrow range for last couple of days between Rs 122 and Rs 126. Price managed to give a breakout of this range and has given a flag breakout pattern. Price is likely to see more upside towards Rs 132.

L&T FINANCE HOLDINGS

Reco: BUY

Last Close: Rs 203

Stop Loss: Rs 199

Target: Rs 211

It has managed to hold above Rs 200 and added fresh long addition. Buying interest is seen in most of the NBFC stocks and this stock looks better for a next leg of rally as per its price pattern.

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