Few trading ideas by Sacchitanand Uttekar, AVP – Technical (Equity) at Tradebulls Securities:
As expected, Nifty galloped towards 9,840 in no time post breaking out from the ‘Broadening formation’. Nifty is now in close proximity towards the upper end of the channel and only a sustained close above 9,840 for couple of days would accelerate the momentum else expect the index to witness a time-wise correction before the next up move begins towards 10,013. On the flipside expect 9,700-9,680 to act as an immediate support zone where longs should be added with an expectation of the secular up move to remain intact.
1) INDIAN BANK
Last Close: Rs 306.5
Target: Rs 360
Secular trend on the weekly scale expected to remain intact as the stock bounces back from its weekly trend line support. A rising three pattern on the daily scale also exhibits continuation of the ongoing trend. The setup provides a phenomenal reward to risk opportunity for short term traders. We strongly recommend longs near this support zone with a stop below Rs 285 for an intermediate upmove towards Rs 360.
2) UJJIVAN FINANCIAL SERVICES
Last Close: Rs 331.90
Target: Rs 440
Ujjivan has been oscillating within a broad range of Rs 450-300 since July 2016. Proximity towards the lower bound of the range and the recent occurrence an Engulfing Bullish pattern near the support reconfirms the oscillation to continue. We expect the stock to bounce back again towards its upper bound near Rs 440-460 zone and hence longs could be considered with a stop below Rs 290.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.