Decisive hold above 10350 to extend Nifty's move to 10400: Chandan Taparia

Nifty outlook and key trading ideas by Chandan Taparia, Derivatives & Technical Analyst at Motilal Oswal Securities:

Outlook:

Nifty index formed a Spinning Top candle and remained volatile for the most part of the session. It failed to hold above 10,370 but managed to attract buying interest on decline near to 10300 zones. It has been consolidating in between 10,300 to 10,370 from the last three trading sessions and requires a decisive hold above 10,350 to extend its move towards 10,400, then 10,420 levels. On the downside it has support at 10,300, then 10,250.

Stocks:

TVS MOTORS

Reco: BUY

Last Close: Rs 736

Stop Loss: Rs 722

Target: Rs 765

It has given a consolidation a hit a new life time high. Major trend of the stock is positive and recent consolidation breakout could add fresh up move with momentum. Thus expecting an upside target towards Rs 765 zones.

RELIANCE INDUSTRIES

Reco: BUY

Last Close: Rs 947

Stop Loss: Rs 930

Target: Rs 980

It has recently taken support at its rising trend line on weekly chart and shows fresh momentum to hit a new life time high zones. It has been making higher top – higher bottom formation, thus suggesting strength to continue to take the Nifty to higher levels.

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