Top trading ideas by Tradebulls Securities: Sell PVR, Bata India

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

Nifty outlook

The month began with the index forming an Engulfing Bearish formation on the weekly scale and saw a decline of almost 4 per cent from the top around 11,760. It now seems to be approaching its immediate support zone near 11,146 (20 Weeks EMA) with the 60 min RSI displaying a positive divergence. Though the formation needs confirmation of a positive price action in terms of a candlestick reversal pattern which is yet not evident. With the broader structure looking weak, any respite due to oversold condition may not be sustained in the near future. Swing high near 11,580 remains a hurdle and remains a key focal point for any change in direction. Hence, short term trades should reduce their shorts near 11,150 & redeploy them once a meaningful pullback /bounceback is witnessed.

                                                                                                 

PVR
 

Reco: SELL
 

CMP:Rs 1,338

PVR has been oscillating within a broader range of Rs 1,400 - Rs 1,250 since last eight months. The recent Double Top formation near the resistance zone again reaffirms the oscillation nature of the stock within the said range. Also, its proximity towards its 200 DEMA is an alarming sign and any slippages below the same could drag the stock towards the lower end of the oscillation. Trading short could be deployed once below Rs 1,326 for a target up to Rs 1,280 with a stop above Rs 1,346.30.

Bata India
 

Reco: SELL  
    

CMP: Rs 990.8

Dark Cloud cover on the monthly scale is a strong indication of a near term top of the ongoing structure. The convergence of short term averages indicates the momentum to continue further in the coming week. Beach and sustained move below 1000 (Highest PE congestion) compliments the setup and hence shorts could be continued for a short term target up to Rs 955 with a stop above Rs 1,022.30

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