Nifty outlook and top trading ideas by Jay Anand Thakkar of Anand Rathi

For Nifty, the immediate support on the lower side is pegged at 12,225; hence, till those levels are not broken, the trend is positive for the target of 12,340

NIFTY: BUY | TGT: 12,340 | SL: 12,225

The Nifty closed in the positive territory in the last trading session with a clear buy crossover in its momentum indicator MACD. The index has been forming higher tops and higher bottoms on the daily charts which indicate that the short term trend in the index is up. The immediate support on the lower side is pegged at 12,225; hence, till those levels are not broken, the trend is positive for the target of 12,340.

CYIENT: BUY | TGT: Rs 445 | SL: Rs 410

The stock has provided a breakout from the double bottom pattern that has been formed on the daily chart. The momentum indicator MACD has provided a buy crossover with a positive divergence which is a positive sign going forward.

LARSEN & TOUBRO INFOTECH LTD: BUY | TGT: Rs 1,730 | SL: Rs 1,630

The stock has provided a breakout from the symmetrical triangular pattern formed on the daily charts. The MACD has provided a buy crossover from the zero reference line which is quite a positive sign. The stock is likely to inch towards the upper end of the range i.e. Rs 1,730.

ONGC: BUY | TGT Rs 133 | SL: Rs 122

The stock has formed a falling wedge pattern which is a bullish reversal pattern. The stock has completed a five wave declining structure post which it retraces a minimum of 38.2 per cent of the entire fall which comes to 133, hence we recommend to buy it with a stop loss of 122.

Disclaimer: Author may or may not have positions in the above mentioned stocks