Nifty outlook and top trading ideas by Devarsh Vakil & Vinay Rajani, technical analysts (PCG desk) at HDFC Securities:
Nifty has surpassed the crucial resistance of 9,988, and is all set to register a new all-time high above 10,137. Despite lot of uncertainty, charts indicated the dominance of bulls over bears in the last one month and it seems to be getting right so far. Earlier resistance of 9,988 is expected to interchange its role as a support going forward for Nifty. Oscillators are showing bullish momentum on the weekly charts. Higher tops and higher bottoms are also well intact. Moving averages setup also adds strength to the existing bullish setup. As far as upside is concerned, we believe that Fibonacci extension of 123.6% projects the target at 10,540 in Nifty for the coming weeks.
Buy Capital First (CAPF)
CMP: Rs 808.65
SL: Rs 775
Target: Rs 865
Stock price is on the verge of registering new 52-Week high above Rs 814. Stock price has been forming higher tops and higher bottoms on the weekly and monthly charts. Stock is consolidating between Rs 650 and Rs 800 for last 6 Months. On the weekly chart, price has formed bullish inverse head and shoulder pattern, indicating continuation of a primary uptrend. NBFC companies have been outperforming for last many months now and CAPF
has got enough potential to give good returns to the investors. Considering the technical evidences discussed above, we recommend buying the stock between Rs 808.65 and Rs 785, for the target of Rs 865, keeping stoploss at Rs 775.
Buy Karur Vysya Bank
CMP: Rs 153
Stoploss: Rs 145
Target: Rs 170
On the week ended 8th Sep 2017, the stock broke out from bullish “Flag” pattern on the weekly chart. In the present week, the stock has witnessed a follow-up buying with stock price reaching a new 52-week and all time high levels. Volumes have been gradually rising along with the price rise on the weekly charts. Stock price has been taking support on its 20-Week EMA and the stock is all short term moving averages are trading above long term moving averages, indicating bullish momentum in the stock ADX and KST indicators have turned bullish on the weekly charts. Considering the evidences discussed above, we recommend buying the stock between Rs 153 and Rs 149, for the target of Rs 170, keeping stoploss at Rs 145.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.