Nifty outlook and key trading ideas by Devarsh Vakil & Vinay Rajani - PCG Desk, HDFC securities:
Nifty has recently found resistance around 10,490 and started correcting, closing below its 5-DMA support. Previous top on the daily chart is placed at 10,250-odd levels, which is likely to act as a strong support going forward. Recent High of 10,490 would remain resistance for the short term. So, we can expect this correction in Nifty to extend towards 10,200-10,250 in the coming days.
Buy KSB PUMPS
CMP: Rs 869
SL: Rs 835
Target: Rs 1035
Stock has been trading in consolidation range of Rs 530 to Rs 780 since February 2015. Looking at the price and volume movement, the stock seems to be getting accumulated for last 1 Month. In the existing month of November 2017, the stock has surpassed the resistance of Rs 766, and it has recently registered new all-time high at Rs 912 on November 6 2017.
The stock has also broken out from ascending triangle on the monthly chart, which indicates the continuation of primary uptrend. Oscillators like MACD, KST and DMI have been indicating bullish momentum in the counter, which raises the confidence to initiate fresh longs at current prevailing levels.
Considering the technical evidences discussed above, we recommend buying the stock between Rs 869 and Rs 845, for the target of Rs 1036, keeping a stoploss at Rs 835 on closing basis.
Buy TORRENT POWER
CMP: Rs 274
SL: Rs 260
Target: Rs 310
Primary trend of the stock is bullish with higher tops and higher bottoms on the weekly charts. The stock has recently broken out from bullish “inverse head and shoulder” pattern, indicating continuation of primary uptrend. Short term moving averages are trading above medium and long term moving averages. It has also witnessed the breakout from symmetrical triangle on the weekly charts, which also indicates the healthy upside from the current levels. The stock price is on the verge of breaking out from the big consolidation range of Rs 170-250, which has been holding for the last 8 quarters. Considering the technical evidences discussed above, we recommend buying the stock between Rs 275 and Rs 265, for the target of Rs 310, keeping a stoploss at Rs 260 on closing basis.
Disclaimer: The analysts may have positions in any or all the stocks mentioned above.