Top technical calls by HDFC Securities: Buy Indian Hotels, Sun Pharma

Nifty outlook and technical calls by Devarsh Vakil & Vinay Rajani - PCG Desk, HDFC Securities:
 
Nifty View:
 
Though Nifty managed to limit its fall to 40 odd points, midcap and small cap indices plunged 2.41% and 2.48% during yesterday’s trade.  Advance decline ratio remained worst since 25 Sep 2017. However, there is no sign of bearish trend reversal seen as of yet on the Nifty daily charts. Bullish trend is still intact with all technical indicators holding strength. Support for the Nifty is placed somewhere around 10590, while resistance for the same is placed at 10900.
 

Buy INDIAN HOTELS

CMP: Rs 144.55
Stop Loss: Rs 138
Target: Rs 154
 
In the current month of January, stock registered new all-time of 148.  Volumes have gone up in the current month along with the price rise. On 16th January 2018, Stock broke out from the consolidation of its previous 5 sessions. Primary trend has been bullish with higher tops and higher bottoms. Moving averages are also indicating bullish momentum in the counter. Hotel industry stocks have started outperforming and it seems that sector is turned around for the medium to long term. Considering the technical evidences discussed above, we recommend buying the stock between 144.55 and 140, for the target of 154, keeping a stop loss at 138 on closing basis.    

 
Buy SUN PHARMA
CMP: Rs 577.70
Stop Loss: Rs 560
Target: Rs 610
 
Stock has been sustaining above its 200 DMA resistance. Bullish “Inverse head and shoulder” pattern is observed on the weekly charts. Stock price has been forming higher tops and higher bottoms on the weekly charts. Oscillators like MACD, RSI and KST have been showing strength on the weekly charts. Nifty Pharma index itself has surpassed the crucial resistance of 200 DMA and Sunpharma carries healthy weight in that Index.
Considering the technical evidences discussed above, we recommend buying the stock between 578 and 568, for the target of 610, keeping a stop loss at 560 on closing basis. 

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