Nifty may hit fresh high near 10,260-10,350 soon: Sacchitanand Uttekar

Nifty outlook and two trading ideas by Sacchitanand Uttekar of Tradebulls

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

  

Nifty Outlook

Nifty has commenced the week on a strong footing as it opened above the apex (9,950) of the contracting range in which it had oscillated during its past 3 weeks. The broad based participation compliments the setup & the ongoing momentum could see the index scale above its current life high placed around 10,138. The momentum could only be distorted in case 10,030 is breached from hereon on a closing basis and hence serves as a trail stop for trading longs. We expect the index to register fresh life highs near 10,260-10,350 zone soon.

Stocks:

BUY: TATA POWER

CMP: Rs 84.80

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 Novemver 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 stoploss below Rs 80.30.

BUY: DR REDDY'S (DRL)

CMP: Rs 2217

Stop Loss: Rs 2135

Target: Rs 2530

Mature continuation pattern on the daily scale. A breach above 2,240 would attract momentum and hence trading longs could be considered with a stop below Rs 2135 for pattern target upto Rs 2,530.

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