Technical calls: Buy Sterlite Tech and Triveni Engineering

Nifty outlook and few trading ideas by Devarsh Vakil & Vinay Rajani - PCG Desk, HDFC securities

Few trading ideas by Devarsh Vakil & Vinay Rajani - PCG Desk, HDFC securities:

Nifty Outlook

Remain Long in Nifty with stoploss at 9,900: Nifty has retraced more than 61.8% of the entire downswing seen from the all-time high of 10,178 to the recent bottom 9,687. Nifty has again surpassed the psychological resistance level of 10,000. The index has been rising for last 8 consecutive sessions and it has risen more than 340 points during this period. The only resistance for the Nifty is seen at its all-time high 10,178. Support is now shifted upwards to 9,920 in Nifty. So to conclude, existing trend of the Nifty is bullish and it would be advisable to hold longs with a stop loss of 9,920 on closing basis. 

Buy Sterlite Tech

CMP: Rs 244

Stop loss: Rs 230

Target: Rs 265

Stock price is on the verge of breaking out from the last three months of consolidation. On Tuesday the stock rose more than 9% with significant jump in volumes. Primary trend of the stock has been bullish with higher tops and higher bottoms. Short term moving averages are placed above long term moving averages. Stock is all set to register a new all-time high above Rs 250. Oscillators have been showing strength on short to medium term charts. Considering the technical evidences discussed above we recommend buying the stock between Rs 244 and Rs 235, for the target of Rs 265, keeping stop loss at Rs 230.

Buy Triveni Engineering

CMP: Rs 99.30

Stop loss: Rs 94

Target: Rs 110

Sugar stocks have been gaining traction for last many months and most of the stocks are currently trading around their 52-Week highs. Triveni Engineering surged 7% with huge jump in volumes on Tuesday. Stock price is on the verge of registering new all-time high above Rs 106. Bullish Cup and handle pattern breakout is seen on the weekly charts, indicating healthy upside from the current levels.  Oscillators have been showing strength on short to medium term charts. Considering the evidences discussed above, we recommend buying the stock between Rs 99.30 and Rs 96, for the target of Rs 110, keeping stop loss at Rs 94.

Disclaimer: The analysts may have position in any/all the stocks mentioned above.