Nifty outlook and top trading ideas by Tradebulls Securities for today

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

Nifty Outlook:

Nifty retraced most of its losses from its previous session but remained constrained within its previous days range. On the daily scale it has formed an ‘Inside Bar’ formation which could be a yardstick for assessing the momentum in the coming session. The pattern exhibits a range of 10,700-10,790 outside which the index could witness momentum. Options data has been exhibiting major bounds placed around 10,600-10,900 for the week & hence the action outside the ‘Inside Bar’ also could remain within limits. Hence aggressive positions on either side of the trend should be initiated only if a follow though move is confirmed.

Stock: SYNGENE BIO

Reco: Buy

CMP: Rs 597

Strong sector performance & secular uptrend on the weekly scale. The recent corrective formation seems terminated as the stock rebounds from its 200 DEMA (Days Exponential Moving Average). Also a breakout from the falling wedge formation during the corrective move compliments the setup. Positional longs could be initiated above 610 with a stop below 580 (closing basis) for move towards 694.

Stock: TECH MAHINDRA

Reco: SELL       

CMP: Rs 690.55

Breakdown from a contraction near the life high levels along with a developing negative divergence on the weekly scale is a compelling evidence to form short term short positions with a stop above 710 for a drift back towards its weekly support zone near 660.

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