Nifty outlook and top trading ideas by Tradebulls for today

Nifty outlook and top trading ideas by Sacchitanand Uttekar, AVP – Technical (Equity), Tradebulls:

Nifty Outlook: Nifty resumed its weakness after a brief pause in yesterday’s trading session as weakness intensified below the level of 10470. The crossover in short term averages still indicates further room towards 10325 zone which is the 61.8% retracement support of its previous up move from 9950-10929. The ongoing momentum could only see a reversal incase 10580 is breach, else expect further weakness during the week. Hence traders should retain shorts until 10580 is defended with an expectation of an immediate extension towards 10325.

                                                                                                            

Stock:    INDIGO
 

Reco.:   Buy

CMP: Rs 1160

Recurrence of multiple spike formations near the support 1100 & a rebound from the support zone displays early signs of distortion of the ongoing down move. Positive divergence on the daily RSI also compliments the setup & hence declines if any should be utilized to create fresh longs. Short term traders could accumulate the stock within the range of 1160-1130 & hold it for a rebound towards 1230 where its 200 DEMA is placed. 

Stock:    HPCL
 

Reco.:   SELL

CMP:    Rs 287

Most of the OMC’s continue to deteriorate due to the ongoing crude price effect. HPCL has been trending down for almost 10 months now & the fresh breackdown from the continuation pattern indicates aggregated weakness. Short positions could be continued with a stop above 298 with an initial target upto 272.

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