Buy and sell ideas from Sacchitanand Uttekar of Tradebulls

Few trading ideas and Nifty outlook by Sacchitanand Uttekar, AVP – Technical (Equity), Tradebulls:

Nifty Outlook:

Very much on the expected lines the index has continued its run so far. The current week started on a strong note as the Nifty registered fresh life high but the trading range has been capitulated as the index traded in a narrow range for last 3 trading sessions. A series of ‘Inside Bar’ formation coupled with the RSI yet to register an overbought state indicates that the rally still has some steam left. We expect the index to register fresh high near 10,260-10,350 during the current series. Momentum could revive once again above 10,160 while a breach below 10,090 from hereon on a closing basis would negate the setup and hence would server as a trail stop for trading longs.

Stocks:

BUY: Tata Power

CMP: Rs 84.60

Stop Loss: Rs 80.30

Target: Rs 98

Triple Bottom on the weekly scale got reaffirmed as the stock registered a firm close above its previous swing high near Rs 84. Also, post November 2016 it has been observed that the stock has been oscillating within a Rising Channel formation with its upper bound now placed around Rs 98. The recent reversion from the pattern support has been supported with consistent incremental volumes. Positional longs could be added for a target upto Rs 98 with a stop below below Rs 80.30.

SELL: DLF

CMP: Rs 190.70

Stop Loss: Rs 198.20

Target: Rs 175

On the daily scale a ‘Rising Wedge’ formation looks mature for a breakdown. The occurrence of an ‘Engulfing Bearish’ formation near the 61.8% retracement zone of its previous down move reconfirms the setup. We expect the stock to revisit its 200-DEMA placed around Rs 173 zone in the coming days. Fresh shorts could be considered around Rs 191.50 with a stop above Rs 198.20 and a target upto Rs 173.

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