Nifty Outlook and top trading ideas by HDFC Securities

Nifty outlook and top stock pick by Vinay Rajani, Technical Analyst, HDFC Securities:

Nifty Outlook

Nifty rose for the 9th straight session, to close at 10548. From the bottom of 9951, Nifty has risen more than 6% in the span of 15 sessions. By touching 10560, Nifty has completed the 50% retracement of the entire fall seen from 11171 to 9951. Above 10560, we can expect Nifty to extend the gains towards 10705, which happened to be 61.8% retracement.  Nifty has been sustaining above its 50 DMA, and same is likely to provide support at 10380 odd levels. 

BUY NCC

CMP: Rs 134.65

Stop Loss: Rs 128

Target: Rs 146

The stock price has surpassed the crucial double top resistance, placed at 133 odd levels. The stock has been forming higher tops and higher bottom on the daily and weekly charts. Volumes have gone up significantly along with the price rise. Short term moving averages are trading above medium to long-term moving averages. Oscillators like MACD, RSI and DMI have been showing strength in the existing bullish strength. We recommend buying NCC for the upside target of 145, keeping SL at 128.

BUY SUNDRAM FASTNERS 

CMP: Rs 607.50

Stop Loss: Rs 575

Target: Rs 660

The stock remained resilient throughout the bearish phase of the markets during Jan-Mar quarter.  The stock price has been forming higher tops and higher bottoms. The stock price is very near to its all-time high closing level of 613. The stock is expected to breakout from the consolidation seen in last 4 months. Yesterday stock surged more than 3% with a jump in volumes.  Oscillators like MACD, RSI and DMI have been showing strength in the existing bullish strength. We recommend buying Sundram Fastners for the upside target of 660, keeping SL at 575.

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