Nifty outlook and top two trading calls by Sacchitanand Uttekar

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

Nifty Outlook

A ‘Channel’ formation is evident on the daily scale with the recent price action near the proximity of its upper end. A breach above 9360 would regenerate momentum and push the index towards 9480 whereas a decline below 9270 from hereon could drag the index towards the lower end of the pattern placed near 9150. As the broader trend remains firm we continue to advocate longs so far as 9050 is held; declines if any should be utilized to add longs with an expectation of a move towards 9480.

Stocks:

POWER GRID

Reco: BUY

CMP: Rs 211

Stoploss: Rs 206

Target: Rs 225

Breakout from the ‘Bullish Pennant’ formation on the daily scale is well supported with volumes. The pattern warrants towards continuation of the secular upmove & indicates a price target upto Rs 225. Momentum trades can initiate fresh longs with a stop below Rs 206.

COAL INDIA

Reco: BUY

CMP: Rs 279.50

Stoploss: Rs 274    

Target: Rs 295

On the daily scale, the ‘Falling Wedge’ formation now looks mature. Occurrence of a ‘Stick Sandwich’ candlestick reversal pattern at the 78.6% retracement of its previous impulse also supports the likely trend reversal. The convergence of the trend strength indicator RSI at 20 also compliments the setup. Traders could participate the upcoming move with a stop below Rs 274 with an expectation of an initial move towards Rs 295.

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