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Avoid leverage longs on Nifty until 9,740 is breached: Sacchitanand Uttekar

Here are two stock ideas and Nifty outlook from Tradebulls

Sacchitanand Uttekar  |  Mumbai 

markets, sensex, nifty

Here are two stock ideas and from Tradebulls:

Nifty Outlook

Index is at the cusp of maturing optimism and euphoria. With fresh life high, continued buying interest and no signs of any major reversal formations on the intermediate scale keeps the mood right for a further extension of the ongoing up-move. Nifty remains confined within the Pennant formation awaiting a fresh breakout from the pattern. A breach below 9,580 would disable the pennant formation & hence serves as a trailing stop for longs. On the flip side, Nifty has not yet witnessed a decisive momentum post closing above 9,640. Therefore, it would be prudent to avoid leverage longs until 9,740 is breached decisively from hereon and a trail stop below 9,580 should be adhered to participate in the ongoing bullish move.


1) Stock Name:  KARNATAKA BANK

Reco:  BUY
CMP: Rs 175.95
Stop Loss: Rs 170
Target: Rs 200

Positive sector outlook & occurrence of a ‘Rising Three’ formation on the daily scale augurs well for the up-move to remain intact. A breach above 181 could amplify momentum and push the stock towards its lifetime high. Traders could participate in this expected momentum with a stop below Rs 170 on a closing basis and add leverage longs above Rs 182 for a move towards Rs 200 followed by Rs 220.

2) Stock Name:  UNICHEM LAB

Reco:  BUY
CMP: Rs 253.3
Stop Loss: Rs 232
Target: Rs 300

Unichem Labs has been oscillating within the channel range of Rs 240-300 for almost a year now. Recent occurrence of an ‘Engulfing Bullish’ formation near the lower end of the range presents an opportunity for trading longs. Fresh longs could be considered with a stop below Rs 248.40 and with a stop below Rs 232 for an oscillation back towards the upper end near Rs 300.

Sacchitanand Uttekar, AVP – Technical (Equity) at He may / may not have position(s) in the stocks mentioned