Top trading ideas by HDFC Securities: Buy HSIL, Surya Roshni

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

Make hay while the sun shines

Nifty has formed “Cup and Handle” pattern on the weekly charts, which indicates the continuation of a primary bullish trend after running correction. The immediate target for the Nifty is seen at 12,430, which happens to be 138.2 per cent Fibonacci retracement of the entire swing seen from 11,760 (August 2018 Top) to 10,004(October 2018 bottom). As far as the support is concerned, it is seen around 11,850 for the Nifty. Midcap and Small-cap indices have developed golden crossover on the charts and therefore we expect huge outperformance coming from that segment.

BUY HSIL (Rs 296.7)

Target Rs. 345 

Stop-loss Rs 280 (Return 15%)

The stock has formed golden crossover of 50 and 200-day moving average (DMA), indicating medium to long term bullish trend reversal. Inverse head and shoulder pattern breakout is observed on the weekly charts. Downward sloping trend line breakout is witnessed on the monthly charts. 

Considering the technical evidences discussed above, we recommend buying the stock at CMP and average it at Rs 287, for the target of Rs 345, keeping a stop loss at Rs 280 on closing basis.

BUY SURYA ROSHNI (Rs 257.45)

Target Rs. 300

Stop-loss Rs 242 (Return 15%)

The stock has taken out the strong resistance of its 200-DMA. Downward sloping channel breakout on the daily charts is seen. Volumes have gone up along with the price rise in last six sessions. It is very near to form the Golden Crossover of 50-DMA and 200-DMA crossover.

Considering the technical evidences discussed above, we recommend buying the stock between CMP and Rs 250 for the target of Rs 300, keeping stop loss at Rs 242 on closing basis.

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The author is a research analyst working with HDFC Securities. Views expressed are his own.