ALSO READExpect Nifty to trade between 9,000-9,400 next week: Sacchitanand Uttekar Nifty outlook and two stock picks by Sacchitanand Uttekar of MOSL Technical calls for today's session by Sacchitanand Uttekar of MOSL Top trading calls by Sacchitanand Uttekar of Motilal Oswal Stock picks from Anand Rathi: Buy Jubilant Foodworks, HUL
Nifty witnessed a steady decline since the Hanging man formation on 5th April 2017. The occurrence of a ‘Doji’ at the retracement support zone augurs well for the termination of the ongoing decline.
With the expectation of the broader market trend remaining intact a sustained close above the ‘Doji’ formation would confirm the reversal. In case if the correction continues we expect 9,050-9,000 to act as a strong support zone in the coming week. With the expiry week just around the corner & the index approaching the lower end of the trading range, we recommend adding longs with a stop below 9,000 with an expectation of a rebound towards the upper end of the trading range placed near 9,300-9,400.
AMARA RAJA BATTERIES - BUY
STOP LOSS – Rs 855
TARGET – Rs 905
Amara Raja Batteries has been consolidating within the Channel formation. Bullish reversal formation has occurred at the retracement support of 61.8% of its previous impulse wave. Rising volumes compliment the bullish setup. Short term traders could add fresh longs with an expectation of a reversion back towards the upper end of the channel placed around 910. We recommend longs with a trading stop on a closing basis below 855 for an initial target up to 905.
INDIA CEMENTS - BUY
STOP LOSS – Rs 165
TARGET – Rs 195
The recent breakout from the continuation pattern augurs well for the secular upmove to remain intact. Even on the long term scale a ‘Rounding Bottom’ formation is in progress. As the recent breakout is well supported with volumes we expect the ongoing momentum to extend towards 195. Hence longs could be added with a stop below 165.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.