Nifty outlook and top two stocks by Chandan Taparia of MOSL

Nifty Outlook and few trading ideas by Chandan Taparia of Motilal Oswal

Nifty Outlook and few trading ideas by Chandan Taparia, Derivatives and Technical Analyst & PFA at MOSL:

Outlook:

Nifty index failed to hold 9620 and corrected towards 9560 levels. It has been making lower lows from last five consecutive sessions and resistances are slightly shifting lower. It formed a Bearish Belt Hold candle on the daily chart and given the close below immediate support of 9580 zone. Now if it sustains below 9580 then selling pressure could be seen towards 9550 and 9530 while needs to cross and hold above 9620 to witness a bounce back towards its multiple hurdle of 9650 and 9680 zone.

Stocks:

ASIAN PAINTS

Reco: BUY

Last Close: Rs 1140

Stop Loss: Rs 1120

Target: Rs 1200

Asian Paints formed a reversal candle in the last two sessions. The price action suggests that buyers are quite active on declines. The pattern has bullish implication as it has appeared at the support price for the stock. Thus recommending to buy with a stop loss of Rs 1120 for an upside target of Rs 1200.

BAJAJ FINANCE

Reco: BUY

Last Close: Rs 1405

Stop Loss: Rs 1375

Target: Rs 1465

The stock had a fresh consolidation breakout and registered a fresh lifetime high. Positive sector outlook and long accumulation also supports our view.

Disclaimer: Chandan Taparia is a Derivatives and Technical Analyst at Motilal Oswal Securities.