Strong momentum will unfold once Nifty surpasses 9540: Sacchitanand Uttekar

Nifty outlook & trading ideas by Sacchitanand Uttekar, AVP - Technical (Equity) at Tradebulls:

Nifty Outlook:
 
Occurrence of a ‘Doji’ candlestick pattern near the upper end of the weekly channel coupled with the RSI regression from the overbought zone warranted towards a pause in momentum & a likely correction.  On the daily scale the theory of 'Resistance becoming Support' has been evident in the past. The ongoing sequence of higher tops & higher bottoms remain intact unless 9,200 holds. The ongoing decline towards 9,360-9,260 zone could find meaning full support in the coming trading session. We expect the index to continue its broad ranged action within 9,480-9,260 & therefore we advocate mean reversion strategy for trading the index. Trading longs could be considered once near the value zone of 9,340-9,260 with a stop below 9,200. While strong momentum could only unfold once the index surpasses 9,540.

 

Stocks:
 
EMAMI - BUY
CMP: Rs 1,087
STOP LOSS: Rs 1,060
TARGET: Rs 1,180
 
Bullish pennant formation on the daily scale indicates uptrend to resume soon. The recent rebound from its 200 days EMA was also supported with decent volumes which complements the bullish setup. A breach above 1,117 could amplify the momentum & hence longs could be considered with a trading stop below 1,060 for an initial target upto 1,145 followed by a positional target upto 1,210.
 
LUPIN - BUY
CMP: Rs 1,228
STOP LOSS: Rs 1,155
TARGET: Rs 1,460
 
Positive sector outlook & development of a Spike on the daily scale indicates termination of the ongoing downward momentum. Slippages from here on towards 1,200 could be utilized to accumulate the stock for a reversal back towards its 200 days EMA placed around 1,460. Short term traders can maintain a Stop below 1,155.