Nifty to find support within 9,580-9,550 in short-term: Chandan Taparia

Nifty Outlook and few trading ideas by Chandan Taparia, Derivatives and Technical Analyst at MOSL

Nifty Outlook and few trading ideas by Chandan Taparia, Derivatives and Technical Analyst & PFA at MOSL:

Outlook:

Nifty index formed a Shooting Star Candle on the Daily chart as it failed to surpass 9,700 zone and corrected sharply in the second half of the session. Index failed to give range breakout and again got stuck in a broader trading range as it has been consolidating in between 9,560 to 9,700 zones from last seventeen trading sessions. Now it has to give a decisive range breakout of the recent trading band for a next leg of rally. With a short term point of view, it has immediate support at 9,580 and 9,550 while resistances are seen at 9,680-9,700 zones.

Stocks:

Zee Entertainment Enterprises

Reco: BUY

Last Close: Rs 510

Stop Loss: Rs 500

Target: Rs 530

Zee Entertainment has respected its support of Rs 500 and turning up even after the volatile market movement. Its low beta stock and a formation of Morning star candle suggests an up move from current levels. We suggest buying the stock with a stop loss of Rs 500 for an upside target of Rs 530.

HDFC BANK

Reco: BUY

Last Close: Rs 1698

Stop Loss: Rs 1675

Target: Rs 1750

HDFC BANK is in a very strong and steady uptrend. Prices made a long green candle and closed above the minor resistance at Rs 1,696, thus paving way for higher prices on immediate basis. As per its price setup, it is likely to see a further rally from current levels to Rs 1750. Consider buying this stock at current levels with a stop below Rs 1675.

KOTAK BANK

Reco: BUY

Last Close: Rs 997

Stop Loss: Rs 980

Target: Rs 1030

The stock is making a higher top – higher bottom and is holding the gains. Major price setup is strong and a follow-up could trigger it for a fresh high levels. We recommend to buy the stock with a stop loss of Rs 980 for an upside target of Rs 1030.

Disclaimer: Chandan Taparia is a Derivatives and Technical Analyst at Motilal Oswal Securities.