Top trading ideas by HDFC Securities: Buy Dabur India, Indian Hotels

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

BUY DABUR INDIA

CMP: Rs 385.55

SL: Rs 370

Tgt: Rs 405

Stock price has broken out from the consolidation range of 365-380 with jump in volumes. Primary trend of the stock has bullish has been bullish with higher tops and higher bottoms. Stock price has registered new all-time high of 387. FMCG sector has been an outperformer for last many months.

BUY INDIAN HOTELS

CMP: Rs 146.30

SL: Rs 141

Tgt: Rs 154

Primary trend of the stock has been bullish with higher tops and higher bottoms on the weekly charts. Stock price has recently reversed north from long term upward sloping trend line support. Stock is currently placed above its 50,100 and 200 DMAs, indicating bullishness for medium to long term. Oscillators like MACD, RSI and DMI have been showing strength in the counter. We recommend buying Indian Hotels for the upside target of 154, keeping SL at 141.

Strong Resistance seen at 10700 in Nifty
 

Nifty unable to sustain 10700 resistance and witnessed profit booking at higher levels, to close at 10633. The level of 10567 is likely to act as immediate support, close below which, would extend the fall for Nifty. On Tuesday, Nifty broke the three days winning streak and closed with a negative market breadth. We would advise cutting longs below 10567 in Nifty. The level of 10700 would continue to remain strong hurdle in Nifty.

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