Technical calls: Buy Lupin and Tata Steel, says Tradebulls Securities

Nifty outlook and top technical calls from Sacchitanand Uttekar of Tradebulls Securities

Nifty outlook and top technical calls from Sacchitanand Uttekar, AVP – Technical (Equity) at Tradebulls Securities:  

Nifty outlook:

Post the 'Inside Bar' formation on the daily scale, the index now seems ready to witness some steady momentum in the coming days. The formation exhibits some hope for the bulls in the short term. The pattern will have its strong bullish implications above 9,870 which could attract strong momentum. Traders should await for a breach of the said range and deploy aggressive positions accordingly. Sustenance above 9,870 could extend the up move towards 9,960 level.

Stocks:

Lupin: BUY
 

CMP: Rs 955.3

Stop Loss: Rs 920

Target: Rs 1,020

Lupin has been oscillating within a falling channel formation since May 2017. The current price action has been near the lower end of the pattern and the development of a positive divergence on the daily scale RSI exhibits a likely change in the trend. Proximity towards the lower end of the formation presents a good reward to risk opportunity for fresh longs. A breach above Rs 970 could confirm the reversal towards an initial target upto Rs 1,020 & hence trading longs could be considered with a stop below Rs 920.

Tata Steel: BUY
 

CMP: Rs 634

Stop Loss: Rs 620

Target: Rs 1,020

Positive sector outlook and the mature continuation formation on the daily scale augurs well for the secular upmove to remain intact. A breach above Rs 640 could push the stock towards Rs 660 and hence trading longs could be considered with a stop below Rs 620.

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