Technical calls by HDFC Securities for today: Buy Sun Pharma, Tata Elxsi

Nifty outlook and top trading ideas by Vinay Rajani  - Technical Analyst, HDFC Securities:

Nifty View

Nifty has been maintaining its choppy trend, where it has remained in the range of 10,600-10,800 for last many sessions. Nifty has to surpass the resistance of 10,800 on closing basis to get clear cut bullish setup. On the downside 10,550-10,600 is a strong support zone for Nifty.

Stocks:

Buy Sun Pharma 

CMP: Rs 574

Target: Rs 610

Stop loss: Rs 555

Pharma sector has remained in the focus in the June Month and many stocks from the sector have formed trend reversal patterns on the charts. Sunpharma remained the leader from the space with price appreciation during the month with rising volumes. For last couple of weeks, stock went in to a consolidation, which could be a small pause after upward swing seen during previous month. Recent consolidation should be utilized to accumulate the stock.  Oscillator setup has also turned bullish. We recommend Buying Sunpharma for the upside target of 610, keeping SL at 555.

Buy Tata Elxsi 

CMP: Rs 1,367

Target: Rs 1,430

Stop loss: Rs 1,330

Appreciation of the dollar against rupee has been in favor of the IT sector. Rupee registered new all-time low against Dollar in the recent past, which could auger well for the IT sector in the coming times. Midcap IT Company, Tata Elxsi broke out from the crucial resistance of 1200 on the long term monthly chart during April 2018. In the recent correction of the Market, Stock remained resilient and continued to extend gains towards new highs. Stock price has been trading above all important moving averages. Oscillator setup has also been bullish for the counter. We recommend buying Tata Elxsi for the upside target of 1430, keeping SL at 1330.

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