Stock Calls by Tradebulls Securities: Buy ICICI Bank, Piramal Enterprises

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

Index tested its triangular pattern resistance around 10930 on an intra-day basis but lacked momentum to breach higher above the same. Nifty once again formed a strong bullish candle post-test of lower pattern support on 15th Jan. The Triangular pattern is in its final stages and is matured for a break above 10930 pattern resistance. Trend strength indicator moved past its signal line and further move past resistance around 60 could accelerate the move on the upside till 11140 pattern target. So far within the pattern, the index has not witnessed any Bearish formation yet near its resistance zone while the support has witnessed reversal formation at every key intersection. Traders should aggressively long the index once a decisive breach above 10930 is witnessed for 11140 target with a stop placed below pattern support of 10700

Stock: ICICIBANK

Reco.: BUY   

CMP: 377

Stock witnessed correction on back of profit booking after attaining new life highs of 383 on 9th Jan 2019. Stock found support at earlier life highs around 370 levels and is recovering back on the upside. Weekly oscillators display no signs of exhaustion since the start of current impulse wave from lows of 348 levels on 26th Dec 2018. On 15-minute time scale stock has broken above a downward channel with support placed at 375 levels. The secular bull trend continues for the stock with a target range of 392 & 396 in coming weeks. Hence investors could initiate long positions in the stock with a stop placed below 366 for 396 in coming weeks.

Stock: PIRAMAL ENTERPRISES LTD

Reco.: BUY   

CMP: Rs 2,370

The stock started fresh impulse on the upside from 1970 lows attained on 10th Dec 2018. Trend strength indicator moved past its signal line as the stock rallied on 15th Jan while oscillator breached above 50 levels. The appearance of strong bullish candleline in past trading session with above average volumes suggest overall setup is matured for renewed momentum for a larger move higher targeting 2590 levels in comings weeks. Traders can long the stock around 2350-2370 range with stops placed below 2250 levels for 2590 targets in coming weeks.  

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