Nifty outlook and trading ideas from Motilal Oswal Securities

Nifty outlook and few trading ideas by Chandan Taparia, Derivative & Technical Analyst at Motilal Oswal Securities:
 
Nifty Outlook:
 
Nifty index slipped below immediate support of 10,138-10,130 zones and corrected sharply towards 10,050 zones. However it witnessed strong recovery of 80 points from lower zones and finally closed the day with the loss of around 20 points. It formed a Hammer candle on the daily chart which has long lower shadow indicates that decline is being bought in the market. Index started to form lower highs from last two sessions and absence of follow up buying is restricting its upside momentum. It respected to its rising support trend line by connecting swing lows of 9,783, 9,913 and 10,050 zones. Now if it manages to hold above 10,138 zones then it may head towards 10,178 and 10,200 zones while on the downside supports are seen at 10,080 and 10,050 zones.

 

Stocks:
 
L&T Finance Holdings - BUY
Last Close: Rs 211
Stop Loss: Rs 205
Target: Rs 220
 
It is in a strong rising trajectory as it has been making higher top - higher bottom on weekly scale. it formed a flag pattern which is a bullish continuation pattern.
 
BIOCON - BUY
Last Close: Rs 364
Stop Loss: Rs 352
Target: Rs 384
 
Price earlier broke out of major resistance at 352 and has now returned to this support level. Pharma stocks are on a rising note and this stock can be a good gainer from current levels.