Bullish on markets; Nifty may hit 10,540 in coming weeks: HDFC Securities

Nifty outlook and few trading ideas by Devarsh Vakil & Vinay Rajani - PCG Desk, HDFC securities:

Nifty Outlook

Nifty has surpassed the crucial resistance of 10,178 and registered a new all-time high above 10,250. Peak and Trough, Moving averages and Momentum Oscillators all are indicating bullish trend for the Nifty. We maintain our bullish view on Nifty with potential upside target of 10,540 in the coming weeks. Short-term support for the Nifty is seen at 10,100 and long should be protected with that stoploss.

Buy Bajaj Electricals

CMP: Rs 414.75

SL: Rs 390

Target: Rs 445

Stock price has recently surpassed the double top resistance placed at Rs 387 with healthy volumes. Stock has registered new all-time high at Rs 417-odd levels. Stock has been forming higher tops and higher bottoms on the weekly charts. Stock price has also formed bullish rounding bottom on the daily chart, indicating continuation of a primary uptrend. Oscillators like MACD, KST and DMI are indicating bullish momentum in the counter. Considering the technical evidences discussed above, we recommend buying the stock between Rs 415 and Rs 400 for the target of Rs 445, keeping stop loss at Rs 390.

Buy Finolex Industries

CMP: Rs 697

SL: Rs 660

Target: Rs 760

Stock price has formed bullish inverse head and should on the weekly chart, indicating continuation of a primary uptrend. Stock has registered new all-time high at Rs 699 and closed almost around that. Short term moving averages are trading above long term moving averages. Higher tops and higher bottoms are well intact on the medium to long term charts. Stock has also broken out from last four-month’s consolidation range of Rs 570-670. Considering the evidences discussed above, we recommend buying the stock between Rs 697 and Rs 670, for the target of Rs 760, keeping SL at Rs 660.           

Disclaimer: The analysts may have positions in any or all the stocks mentioned above.