Nifty outlook and few trading ideas by Sacchitanand Uttekar, AVP – Technical (Equity) at Tradebulls:
After 8 days of a steady sequence of higher tops followed by higher bottoms, the index did slip below its previous day’s low. Though the broader trend is expected to remain intact with a minor hurdle near 10,100, slippages towards 9,888 should not be considered as a change in trend. We retain our stance that the upmove on a broader basis would continue towards 10,370 while momentum would be witnessed only above 10,100. Hence any declines should be considered as an opportunity to add longs.
CMP: Rs 1750
Stop Loss: Rs 1700.30
Target: Rs 1822
Occurrence of a ‘Spinning Top’ formation near the lower end of the Megaphone formation on the daily scale indicates support to remain intact near 1740. Fresh longs could be added upto 1740 with a stop below 1700.30 for an initial target upto 1822.
CMP: Rs 633
Stop Loss: Rs 655.30
On the intraday scale the stock witnessed a breakdown from the Rising Channel Formation. The pattern indicates a move towards 605 which could witness an extension towards 580 in the coming days. Pullbacks towards 635-640 should be used to create fresh shorts in the OCT series with a stop above 655.30
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Disclaimer: The analyst may have positions in any or all the stocks mentioned above.