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

Buy BPCL, NTPC and Indiabulls Housing Finance, says Chandan Taparia

Outlook:

Nifty index opened positive but failed to hold its gain and corrected towards 9,900 zone. It closed positive for third consecutive session and has been making higher highs – higher lows on the daily chart. Recently index rallied from 9,685 to 9,947 and formed a Spinning Top candle on the Daily scale which indicates that bears again started to fight to restrict it positive momentum. Now if Nifty index sustains below 9,880, then some profit booking could drag it towards 9,820 to 9,775 zones, while a hold above 9,928-9,950 could drive the fresh up move towards 10,000-10,050 zones.

Stocks:

INDIABULLS HOUSING FINANCE

Reco: BUY

Last Close: Rs 1200

Stop Loss: Rs 1190

Target: Rs 1280

Price is in a very strong up trend on the weekly scale. The daily chart is showing a breakout from a flag pattern. Housing finance companies are on a roll and Ibullhsgfin can be a major gainer on a break above 1220 for a possible rally to 1280. Buy on a hold above 1220 for a rally towards 1280.

NTPC

Reco: BUY

Last Close: Rs 176

Stop Loss: Rs 171

Target: Rs 186

It has given a consolidation breakout on the daily chart and the entire power sector is getting attraction from last couple of sessions. It has managed to hold immediate support of 170 and given a recent highest daily close.

BPCL

Reco: BUY

Last Close: Rs 493

Stop Loss: Rs 480

Target: Rs 520

It has taken support after the recent profit-booking decline of last one week. Major trend of the stock is positive and recent price structure provides fresh buying interest.

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