Nifty outlook and top three trading ideas by Chandan Taparia of MOSL

Buy IOC, YES Bank and Power Grid, says Chandan Taparia of MOSL

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

Nifty index opened positive and negated its formation of lower highs – lower lows of last four trading sessions. It witnessed a bounce back move after the sharp decline of the last week and closed the session near 9,800 zone with the intraday gains of 83 points. It formed a bullish candle on the daily chart and managed to move back near to its 50-DEMA. Now index has to continue to hold above 9,775 zone to witness an up move towards 9,860-9,880 zones which is the 38.20% retracement of its recent fall from 10,138 to 9,685 levels. On the downside, it has support at 9,750 and 9,710 levels to hold the recent pull back rally.

Stocks:

IOC

Reco: BUY

Last Close: Rs 419

Stop Loss: Rs 409

Target: Rs 445

It has made multiple lows at Rs 403 in the last couple of days, which suggests sustained buying interest at this level. It made three outside up pattern which is a bullish sign. Price action sees a strong momentum and it is likely to witness more upside towards Rs 445. Thus, we recommend buying at current levels with a stop below Rs 409 for a rally towards Rs 445.

YES BANK

Reco: BUY

Last Close: Rs 1,778

Stop Loss: Rs 1,740

Target: 1,850

Major trend of the stock is positive and recent declines from Rs 1,860 to Rs 1,700 provides a fresh buying opportunity. It has been among the outperformer in last couple of months so a stability or a bounce back in index could start the fresh leg of rally.

POWER GRID

Reco: BUY

Last Close: Rs 222

Stop Loss: Rs 215

Target: Rs 233

It tested the previous breakout zones and recent multiple support at Rs 212. Positive price pattern and sustained buying interest suggests an up move towards new high territory.

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