Top trading ideas for today: Buy Tech Mahindra, Muthoot Finance

Nifty outlook and top trading ideas by Sacchitanand Uttekar, AVP – Technical (Equity), Tradebulls:
 
Nifty Outlook:
 
On the daily scale Nifty has displayed a good resilience from its recent supports around 10160 & has been trending well within the range of 10500-10300. The immediate requisite is a sustenance above 10540 which would open the gate towards 10760. The Gap support on the other end near 10240 could be the critical point of evaluation from here on for the ongoing momentum to sustain, so expect the index to fire once above 10540 , else it could remain oscillating for a while within the range.  Short term traders should adhere towards 10230 as a trail stop for longs while aggressive positions could be reinstated once above 10540.

 

Stock: MUTHOOT FINANCE
Reco: Buy
CMP: Rs 398
 
Muthoot finance Ltd. Has been oscillating well within a downward sloping channel since November 2017. The recent Spike occurrence followed by a Bullish Harami formation near the lower bound of the pattern depicts the strength of the support near 360. The recent rebound wave which commenced from this support has impulse wave characteristics which augurs well for a move towards 426 where its 200 DEMA is placed which could eventually see an extension towards the upper end of the channel formation which is currently placed around 440. Traders could ustilise the opportunity to build positional longs with a stop below 374.

 
Stock: TECH MAHINDRA
Reco: Buy
CMP: Rs 639
 
Positive sector outlook & the ongoing secular uptrend intact on the monthly scale. The ongoing contraction seems to have witnessed a breakout & the move should commence towards 702 zone. Trading longs with a stop below 620 could be considered to participate the expected momentum.
 
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.