Nifty gained over half a percent and re-tested 10,000 after weeks of consolidation. It opened gap-up and gradually moved higher, tracking firm global markets
and supportive local cues. The recently concluded GST Council meet boosted the sentiment as the members decided to cut rate of over 40 articles of mass consumption. On sectoral front, private banking counters performed exceptionally well while others traded mixed.
We suggest continuing with the stock specific trading approach and see how Nifty will behave around 10,000. Private banks, NBFCs and auto are performing in line with our view and likely to carry this momentum ahead as well.
Few trading ideas by Religare Securities:
Last Close: Rs 394.80
Initiation range: Rs 389-392
Target: Rs 410
Stoploss: Rs 380
GAIL has witnessed fresh breakout from a consolidation pattern today i.e. on 11th Sep and looks all set for a fresh surge. Traders can use any dip to accumulate in the given range.
Last Close: Rs 676.50
Initiation range: Rs 670-675
Target: Rs 700
Stop loss: Rs 660
TATACOMM has rebounded swiftly from its support zone around 570 of late with noticeable rise in volume. And, it has formed a fresh buying pivot and likely to witness strong surge in near term. Traders should go long in the given range.
Rec: SELL SEP FUTS
Last Close: Rs 68.35
Initiation range: Rs 69.50-70.50
Target: Rs 66
Stop loss: Rs 71.50
ALBK, after the recent bounce, has failed to sustain above its resistance zone around Rs 72 and has formed a fresh shorting pivot on chart. Keeping in mind its overall trend, we suggest initiating fresh shorts in the given range.