Stock Calls by Tradebulls Securities: Buy Godrej Industries, Auropharma

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

Nifty Outlook:

Nifty witnessed a rebound from the lower levels on account of its oversold readings. On the pattern front, the weekly intermediate support zone has worked well & it seems like the index could witness a Harami kind of formation at the end of this week. Though the final Exhaustion Gap remains pending to conclude the GAP theory which commenced with a Break-Away Gap when the index hurdled its 200 DEMA placed near 10800 followed by the Run Away Gap near 10540 which remains a key resistance for today’s session. On the broader structure, the correction seems almost done as any slippages towards 10155 would still be considered to add longs. As the volatility has started to cool off it’s an ideal time for investors to nibble in & commence buying some good fundamentally sound stocks for their folios. 

Stock: GODREJ INDUSTRIES

Reco.: BUY

CMP: Rs 484

Post a severe decline of 21 sessions in a row the stock has witnessed a strong reversal formation on the daily scale. The occurrence of a Piercing Line candlestick formation is supported with the substantial jump in OI action with decent volumes. Positional longs should be considered with a stop below 448 for a retracement target up to 560.

Stock: AUROPHARMA

Reco.: BUY   

CMP: Rs 779

Auropharma has been consolidating within the contracting pattern which looks like a symmetrical triangle formation. The recent occurrence of Hammer pattern reconfirmed the pattern support zone near 730 while the latest positive crossover within the Daily RSI augurs well for momentum. Expect the stock to witness a quick move towards 840-860 zone & hence longs could be added with a stop below 748.

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