Top trading ideas by Chandan Taparia of MOSL

Here are a few trading ideas by Chandan Taparia, Derivatives and Technical Analyst & PFA at MOSL:

Outlook

Nifty remained consolidative and witnessed a marginal decline during the day. However, buying interest was seen on decline which took it back above 8,800. Though the daily RSI has been reporting an overbought state, the occurrence of consecutive long wicks reiterates the strength in the 8,720 support. Therefore, the level remains critical for the sequence of higher highs and higher lows on the intraday scale to continue. Only a sustained breach below the 8,720 would indicate loss in momentum and push the index lower towards its intermediate supports around 8,600 while a hold above 8,820 may extend this rally towards 8,888 then 8,968 levels.

Stocks:

KOTAK BANK

Reco: BUY

Last Close: Rs 793

Stop Loss: Rs 771

Target: Rs 840

Stock witnessed a fresh breakout from the contraction on the weekly scale. A Cup and Handle pattern is at its development stage. It has taken support near its multiple support area near Rs 760 and may outperform amongst the other private banks.

BHARAT FORG

Reco: BUY

Last Close: Rs 1040.90

Stop Loss: Rs 1005

Target: Rs 1111

Bharat Forg managed to give decisive move above Rs 1000 zones and started the fresh up move. It is trading near seventeen months highs and recent momentum may drive this rally towards 1111 zones.

EXIDE INDUSTRIES

Reco: BUY

Last Close: Rs 215.50

Stop Loss: Rs 209

Target: Rs 230

It has given the highest daily close and recorded a fresh life-time high levels. Positive momentum with rising volumes could continue its up move towards Rs 230 and higher levels.

Disclaimer: Motilal Oswal Securities ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.

Chandan Taparia is an Deivatives and Technical Analyst at Motilal Oswal Securities.