Top trading ideas by CapitalVia: Sell TVS Motors, Piramal Enterprises

Technical calls by Gaurav Garg, Head of Research, CapitalVia Global Research Limited- Investment Advisor

Nifty View:

The markets opened on Monday on a flat note with Nifty 50 index making its first attempt to cross the 11,600-mark sustainably for the week. However, it closed below 11,600 for the day. For the next two days, it seemed the bulls had taken charge as the Nifty attempted to cross this mark sustainably but seemed to be facing resistance at the 11,700 level. 
 

On Thursday, the day of weekly option contract expiry, we saw indecisiveness in the markets and the bears appeared strong towards the end of the week. Investors showed disappointment at Finance Minister Nirmala Sitharaman's reconfirmation of her views on taxation of FPIs. In the end, markets closed below an important support level at 11,500 closing at 11,419.25. Major declines witnessed for Auto Sector followed by Media and Private Banks.
 

With several companies yet to announce their Q1 results, an expectation for the index to be volatile can be kept going forward. A bullish opening would be crucial for Nifty on Monday for an upward trend continuation.
 

Sell TVS Motors July Future 

Entry: 390.90

Target:334.80

Stop Loss: 425.10
 

Overall, the Auto index is in continuous downtrend and has already fallen more than 5 per cent this month. TVS Motors is trading below its 100 & 200-WEMA. On the other hand, the stock was trading in a channel formation from last couple of months and now has given a breakdown below its channel support. MACD is also showing that negative divergence can persist further as there is a negative crossover in the daily chart.

Sell Piramal Enterprises
 

Entry: 1,874.90

Target: 1,579.90

Stop Loss: 2,085.10

The stock is in a continuous downtrend and is consolidating below its 200-WEMA from the last 3-4 weeks. Daily and weekly oscillators are also showing further downside movement. There is also crossover of short and intermediate term EMA in the weekly chart. Moreover, sectoral index has also fallen more than 3 per cent in this month itself and further downside can’t be ruled out. So, further weakness could persist in the stock in the upcoming weeks.

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