Nifty needs to hold above 9900 to move towards 9928-10000: Chandan Taparia

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

Outlook:

Nifty index opened positive but failed to cross its life-time high of 9,928 and witnessed a decline towards 9,863. It formed a bearish candle similar to a Bearish Belt Hold on the daily chart and almost nullified and engulfed the previous day’s bullish candle. It seems that bulls and bears both are fighting hard to make or break 9,900 zone to get a decisive move. Now it has to cross and hold above 9,900 zone to witness an up move towards 9,928 then 10,000 mark while on the downside supports are seen at 9,850 then 9,820 levels.

Stocks:

FEDERAL BANK

Reco: BUY

Last Close: Rs 119

Stop Loss: Rs 116.50

Target: Rs 124

It has given a consolidation breakout and holding well above its rising support trend line on the daily chart. Major trend of the stock is positive and recent price set up provides a fresh buying opportunity. It formed a strong bullish candle and a hold above Rs 120 could start the sharp up move and fresh life time high territory.

DIVI'S LABS

Reco: BUY

Last Close: Rs 744

Stop Loss: Rs 725

Target: Rs 785

It has given the breakout from its Pole and Flag pattern on the Daily chart. However it witnessed a small declines from Rs 760 but major pattern is intact which could drive the up move to respect the price pattern.

HDFC BANK

Reco: BUY

Last Close: Rs 1,710

Stop Loss: Rs 1,685

Target: Rs 1,780

Made a highest daily close and given the breakout from its symmetric triangular pattern on the daily chart. It is having a strong price set-up and could support to Bank Nifty index as well to head to new high territory.

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