Technical calls from MOSL: Sell LIC Housing Finance, buy ICICI Bank

Nifty Outlook and few trading ideas by Chandan Taparia of MOSL

Nifty Outlook and few trading ideas by Chandan Taparia, Derivatives and Technical Analyst & PFA at MOSL:
 
Nifty Outlook:
 
Nifty index formed a Bearish candle similar to a Bearish belt hold on the daily chart. Index has given the lowest daily close in last 21 trading sessions. Recently it failed to surpass its upper band of the trading range at 9,700 and slipped to the lower band of the range in just two sessions. Overall index has been consolidating in between 9,560 to 9,700 zones from last 19 trading sessions and now a decisive range breakout would give a fresh leg of rally. If it sustains below 9,580-9,560 then a decline could be seen towards 9,520 then 9,480 zone while a hold above 9,620 could witness a bounce towards 9,680-9,700 zone. India VIX moved up by 3.10% at 11.55 and rising volatility from last three consecutive session is making market to turn volatile in the broader trading range. We have seen significant Call writing at 9,600 and 9,700 strike which suggests a limited upside while intact Put writing at 9500 strike could support the market on declines being the expiry week.

 

Stocks:
 
ICICI BANK - BUY
Last Close: Rs 291
Stop Loss: Rs 285
Target: Rs 303
 
It is respecting to its multiple support of 285 zone from last four weeks and forming a Bullish Flag pattern on the weekly chart.
 
VEDANTA - BUY
Last Close: Rs 236
Stop Loss: Rs 230
Target: Rs 249
 
It has taken support at its rising trend line and giving a sense of strength to retest its crucial hurdle of 249. It is also forming the higher swing lows at 217, 222, 226 and 230 zones.
 
LIC HOUSING FINANCE - SELL

Last Close: Rs 754
Stop Loss: Rs 768
Target: Rs 727
 
It formed a Bearish Engulfing candle on the weekly chart and broken immediate support of 768. It has been making lower lows from last five sessions.
 
Disclaimer: Chandan Taparia is a Derivatives and Technical Analyst at Motilal Oswal Securities.