Buy Bharat Finance, Maruti Suzuki, says Chandan Taparia of MOSL

Nifty outlook and top two trading ideas by Chandan Taparia of MOSL

Outlook:

Nifty index opened positive but failed to hold above 9,880 and remained in a small trading range of 30 points for the entire trading session. It formed a small bodied candle but was holding above previous day’s close of 9,850 zones. Index has been making higher lows from last three trading sessions and now it has to continue to hold above 9,820 to witness an up move towards 9,928-9,950. On the downside, multiple supports are seen at 9,775 and 9,750 to hold the recent pull back move in the market.

Stocks:

BHARAT FINANCE 

Reco: BUY

Last Close: Rs 880

Stop Loss: Rs 847

Target: Rs 939

It has seen a V-shaped recovery in the last week and has given a strong breakout on daily, weekly and monthly scale. It formed a positive price pattern and momentum could drive it to hit the 52 weeks high of Rs 920-939 zones.

MARUTI SUZUKI

Reco: BUY

Last Close: 7,612

Stop Loss: Rs 7,460

Target: Rs 7,850

Maruti Suzuki has made an intermediate term double bottom at the support of Rs 7,400 with the follow up buying interest. On Thursday price closed above the falling trend line and giving a confirmed sign of reversal in the stock. The decline from the high at 7,814 is now ending and a new leg of uptrend seems to be resuming. With auto index showing signs of reversal and Maruti being the best bet in the sector makes this stock a compelling buy.

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