Stock calls by Tradebulls Securities: Buy M&M, Aurobindo Pharma

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

Nifty Outlook:

As expected the index witnessed a move towards the confluence zone of its 200 DEMA & 20 EMA placed now around 10750-10710. Post a rally of nearly 600 points from its swing bottom around 10138 the index witnessed some bouts of profit booking as the index slipped back towards its 5 DEMA support placed around 10480. India VIX, on the other hand, has witnessed a cool off of around 4% during the week & seems have shifted its range to 20-15.50. Abrupt spurts of high volatility remain the catalyst during this bottoming out process & hence the index could witness some range action within 10300-10700 for the next few sessions too. Consolidation post the surge would help stabilize the trend as it evolves for its next journey towards 10930 which remains the   Weeks EMA. Hence the strategy remains for investors to accumulate quality while traders can add fresh longs near the 10280 zone with a stop below 10120 for the next move towards 10930 to be witnessed in the next few weeks ahead.

Stock: M&M

Reco.: BUY

CMP: Rs 757

The occurrence of a Spike / Pinbar formation on the weekly scale seems to have concluded the ongoing decline in the in the stock. While the trend strength indicator elevating from its oversold zone augurs well for strong pullback move. Momentum longs could be considered above 780 with a stop loss below 750 for an immediate target up to 825.

Stock: AUROBINDO PHARMA

Reco.: BUY   

CMP: Rs 756

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. Expect the stock to witness a quick move towards 840-860 zone & hence longs could be added with a stop below 735.

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