Nifty outlook and trading ideas by Chandan Taparia of Motilal Oswal

Downside support for Nifty is seen at 9928 and 9,880 levels

Nifty Outlook:
 
Nifty index surpassed its immediate hurdle of 9980 zone and headed towards 10028 levels. It registered the highest daily close in last 23 trading sessions and managed to close above psychological 10000 mark. It formed a bullish candle on the daily chart and supports are gradually shifting higher. Now it has to continue to hold above 9,980 zone to witness an up move towards 10,050 then 10,080 levels while on the downside supports are seen at 9928 then 9,880 levels.
 
Stocks: 
 

ASHOK LEYLAND - BUY 
Last Close: 116 
Stop Loss: Rs 111 
Target: Rs 125

  
It formed a Cup and Handle pattern on the weekly chart and trading at its life time high territory. On the daily charts we see that the price has moved out of a small flag pattern which is again a bullish sign. It is poised to seek significant gains as entire Auto sector is showing attraction again. 
 
HDFC BANK - BUY 
Last Close: Rs 1,823 
Stop Loss: Rs 1,770 
Target: Rs 1,920 
 
Managed to hold multiple supports near to 1738 and given a consolidation breakout from its rectangle price pattern on lower degree chart. It has given the highest daily close in last 22 trading sessions and just few points away from its life high territory. Major trend is positive and recent consolidation provides fresh opportunity for the next leg of rally. 

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