Buy Maruti, Bharat Forg and Federal Bank, says Chandan Taparia

Nifty Outlook and few trading ideas by Chandan Taparia, Derivatives and Technical Analyst at MOSL

Nifty Outlook and few trading ideas by Chandan Taparia, Derivatives and Technical Analyst & PFA at MOSL:

Outlook:

Nifty index opened positive and made a high of 9,700 mark. However, it witnessed a dip of around 30 points in last hour of the session but it registered a second highest daily close at 9,675. Index has been making higher lows from last four sessions and now needs to surpass its triple tops hurdle of 9,700 zone to extend its fresh leg of rally. Index has recently rallied from 9,450 to 9,700 mark and now needs to hold above 9,650 to extend its up move towards 9,700 then 9,750 zone while on the downside supports are seen at 9,620 then 9,580-9,560 zones.

Stocks:

MARUTI SUZUKI

Reco: BUY

Last Close: Rs 7474

Stop Loss : Rs 7380

Target : Rs 7700

It has given the highest daily close and started its fresh move after the consolidation of last three weeks. Major trend of the stock is positive and recent consolidation gives a fresh opportunity for a new highs.

BHARAT FORG

Reco: BUY

Last Close: Rs 1108

Stop Loss : Rs 1067

Target : Rs 1181

It formed a Hammer candle on the weekly chart and Price is at 78.6% retracement which coincides with a rising trend line. It has taken support at the lower band of the rising channel on weekly chart and provides a better risk – reward ratio at current levels.

FEDERAL BANK

Reco: BUY

Last Close: Rs 115

Stop Loss : Rs 113

Target : Rs 120

Federal Bank formed a Bullish Tower bottom pattern on the Daily chart which has a bullish implication. We also see that the candle of the last session has engulfed the candles of last several days. This is a bullish sign and suggesting a rally towards Rs 120 from current levels. Thus suggesting to buy the stock with the stop loss of Rs 113 for an upside target of Rs 120.

Disclaimer: Chandan Taparia is a Derivatives and Technical Analyst at Motilal Oswal Securities.