Top trading ideas for today's trade by HDFC Securities

Recommends buying Kajaria Ceramic and Gujarat Industries Power

Nifty outlook and top trading ideas by Devarsh Vakil & Vinay Rajani, technical analysts (PCG desk) at HDFC Securities:
 
Nifty Outlook
 
Nifty finally surpassed the crucial resistance of 10,137, to close at 10,147. Nifty is maintaining the bullish setup of higher tops and higher bottoms with most of the oscillators indicating bullish momentum. Nifty has also broken out from the consolidation and now looks all set to extend the rally towards next target of 10,540. Support has now shifted upwards to 10,043 in Nifty.
 

STOCKS
 
Kajaria Ceramic - BUY
CMP: Rs 737
Stop Loss: Rs 700

Target: Rs 800
 
Stock price has broken out from the consolidation ranging from 700 to 725, which has holding for last 3 weeks. Primary trend has been bullish for the stock with higher tops and higher bottoms. Moving average setup also indicates the sign of strength in the current trend. On 19th Sep 2017, stock rose 4% with significant volumes, which indicates the starting of the bullish momentum in the counter. Considering the technical evidences discussed above we recommend buying the stock between 737 and 715, for the target of 800, keeping SL at 700.
 
Gujarat Industries Power - Buy

CMP: Rs 139
Stop Loss: Rs 132
Target: Rs 153
 
Stock has closed at its all-time high above 139. Stock has also broken out from bullish cup and handle pattern on the short term charts. Volumes have been rising along with the price rise recently. ADX and KST indicators have turned bullish on the weekly charts. Short term moving averages are trading above long term moving averages, indicating bullish momentum. Considering the evidences discussed above, we recommend buying the stock between 139 and 135, for the target of 153, keeping SL at 132.