Technical calls from HDFC Securities: Sell IndusInd Bank, RIL

Nifty outlook and top trading ideas by Vinay Rajani - Technical Analyst, HDFC Securities.

Nifty View

By closing below 11,100, the Nifty has breached the crucial support of its simple 200 DMA, placed at 11,140 and the previous bottom of 11,108 on the daily charts. Next possible downside target for Nifty is seen at 10,806, which happens to be 61.8 per cent retracement of the entire upswing seen from 10,004(26 Oct Bottom) to 12,103 (all-time high registered on June 3). Resistance is shifted downward to 11,310 in Nifty.

SELL INDUSIND BANK
CMP: Rs 1,337
TARGET: Rs 1,260
STOP LOSS: Rs 1,380         

The stock has closed at the lowest level since 10th March 2017. Double bottom support of 1,348 is breached decisively. Moving average and Oscillator setup is bearish on the short to medium term charts. We recommend selling the stock at CMP, for the target of 1,260 keeping a stop loss at 1,380 on closing basis.

SELL RELIANCE INDUSTRIES
CMP: Rs 1,181
TARGET: Rs 1,110
STOP LOSS: Rs 1,230

The stock has closed below its 200 DMA support and has been forming lower tops and lower bottoms. Bearish head and shoulder breakdown is witnessed on the weekly charts. We recommend selling the stock at CMP, for the target of 1,110, keeping a stop loss at 1,230 on closing basis.
The author is a research analyst working with HDFC Securities. Views expressed are his own.