Top trading ideas by Tradebulls Securities: Buy M&M, Federal Bank

Nifty outlook and top trading ideas from Sacchitanand Uttekar, DVP – Technical (Equity), Tradebulls Securities:

Nifty Outlook:

Nifty have been hovering around the 10200 zone as it witnessed a smart recovery again from the lows of 10100-10130 zone. A sustained move above 10260 should trigger a strong short covering rally which could see an extension towards the recent bearish gap area around 10430. On the daily scale the index is yet to witness a firm reversal candlestick formation which could compliment the setup but the RSI divergence as compared to the 11th OCT 2018 low of 10138 looks assuring. Highest PE OI concentration still stands at 10000 while latest significant action zone has been at 10200 while 10400 CE has witnessed some significant action. Hence the action could remain choppy within the range of 10000-10400 with a mean placed around 10200 which could as act as a pivotal for the coming sessions. But the broad strategy remains for investors to accumulate quality while traders can add fresh longs near the 10140-10200 zones with a stop below 10020 for the next move towards 10930 to be witnessed in the next few weeks.

Stock: M&M

Reco.: BUY

CMP: Rs 736

Occurrence of a Spike / Pinbar formation on the weekly scale seems to have concluded the ongoing decline in the in the stock. While the trend strength indicator elevating from its oversold zone agurs well for strong pullback move. The recent development of a positive divergence on the RSI is indicating a firm bullish trend to be evolved soon.  Momentum /Aggressive longs could be considered above 780 while passive positions could be initiated now with a stop loss below 710 for a target upto 825.

Stock: FEDERAL BANK

Reco.: BUY   

CMP: Rs 81.75

Recent breakout from the weekly falling wedge formation followed by the recent Pennant / Flag formation on the daily scale compliments the ongoing upmove. Declines if any should be utilized to add portfolio long swith a stop below 69 for a potential pattern target upto 108.

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