Support for Nifty seen at 10,400, resistance at 10,740: HDFC Securities

Nifty outlook and top trading calls by Devarsh Vakil & Vinay Rajani - PCG Desk, HDFC securities: 

Nifty View: Nifty has managed to surpass the crucial resistance of 10500 on closing basis. Last week, Nifty broke out from the bullish “Flag” pattern on the weekly chart, which indicates the fresh momentum buying in the Index. Support for the Nifty is seen at 10400, while upside target for the same is somewhere around 10740 in the coming days. Price Peak and trough setup, Moving averages setup, Oscillators Setup all are in favor of bulls. Midcap and Small cap indices are likely to continue their outperformance.

Buy HBL POWER

CMP: Rs 74.40

Stoploss: Rs 71

Target: Rs 80

Stock price has formed rounding bottom on the monthly charts, indicating bullish trend. Stock price has been forming higher tops and higher bottoms on the daily and weekly charts. For last four months price has been moving up with higher volumes, indicating accumulation in the stock. Oscillator setup and Moving average setup is showing strength in the counter. Considering the technical evidences discussed above, we recommend buying the stock between Rs 74.40 and Rs 72, for the target of Rs 80, keeping a stop loss at Rs 71 on a closing basis.  

  

Buy TNPL

CMP: Rs 435

Stoploss: Rs 418

Target: Rs 470

Paper stocks have been showing significant strength for last couple of weeks. In the current month, TNPL has moved up more than 16% with the higher volumes. For last two weeks, Stock remained in the narrow range with dry volumes, which can be considered as a small consolidation in overall bullish trend. Stock price surpassed the crucial resistance of the double top placed at Rs 398, and now sustaining above it. Oscillator setup and Moving average setup is showing strength in the counter.  Considering the technical evidences discussed above, we recommend buying the stock between Rs 435 and Rs 425, for the target of Rs 470, keeping a stop loss at Rs 418 on closing basis.  

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