Nifty outlook and three trading ideas from Chandan Taparia

Technical calls by Chandan Taparia, Derivatives and Technical Analyst & PFA at MOSL

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

Outlook:

Nifty index formed an Inverted Hammer on the daily chart as it failed to hold its gains and corrected sharply towards 9,500. It closed with the marginal gains of 13 points after the negative streak of last six sessions. Now if it sustains below recent swing low of 9,480 then fresh selling could drag the index towards 9,450 and 9,420 zone while on the upside it has strong hurdle at 9,560-9,580 zone. Recently index has given the break down from its consolidation band of 9,560-9,700 zone and till it doesn’t get in the previous trading zone, overall weakness may remain in the market.

Stocks:

ICICI BANK

Reco: BUY

Last Close: Rs 293

Stop Loss: Rs 285

Target: Rs 306

It is respecting to its multiple support of Rs 285 from last four weeks and is forming a Bullish Flag pattern on the weekly chart.

VEDANTA

Reco: BUY

Last Close: Rs 251

Stop Loss: Rs 245

Target: Rs 263

It has given the break out from its consolidation band of Rs 225-250 on the higher side. It has given the highest daily close in last 11 weeks.

TVS MOTORS

Reco: BUY

Last Close: Rs 545

Stop Loss: Rs 532

Target: Rs 565

It made a Bullish Fry pan bottom at the support of Rs 525-527 zone. It is respecting this multiple support from last five weeks and has surpassed its falling supply trend line on the daily chart. Price has just moved higher from the support zone with rising volumes which offers a good risk – reward ratio at current levels. Thus, one can buy this stock with a stop loss of Rs 532 for an upside target of Rs 565.

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