 "Top trading ideas by HDFC Securities for today: Sell Hindalco, ICICI Bank")
Nifty outlook and technical calls by Vinay Rajani - PCG Desk, HDFC Securities:
Nifty View
Nifty has broken down below the crucial support of 10300, which was derived from the upward sloping trend line on the daily charts. Nifty has also violated the previous bottom support of 10276, registered on 6th Feb 2018. Yesterday, Nifty plunged 225 odd points from day’s high, to close below 10249. Immediate support for Nifty is seen at its 200 DMA, currently placed at 10125.
Yesterday’s fall resulted in to a breakdown from the ascending triangle on the short term charts. Far support for Nifty is seen at 9920, which happened to be the 38.2% retracement of the entire rally seen from 7900 to 11172.
SELL: Hindalco
CMP: Rs 226
Stop Loss: Rs 235
Target: Rs 210
Stock price has recently violated the crucial support of multiple bottoms placed around 132 on the daily charts. Price has also breached the support of its 200 DMA, placed at 237.50. Stock has closed at the lowest level since 21ST Aug 2017. Price witnessed a violation of support along with rise in volumes. Stock has been forming lower tops and lower bottoms on the on the daily chart since starting of this calendar year. Stock has reached below 20,50, 100 and 200 DMA indicating bearish trend on short to medium term charts. Though, the entire month of March is yet to be finished for this quarter ending, there are good chances of stock forming bearish engulfing pattern on its quarterly charts. We recommend Selling Hindalco in the price range of 226-232 for the downside target of 210, keeping SL at 235.
SELL: ICICI Bank
CMP: Rs 295
Stop Loss: Rs 305
Target: Rs 280
Stock has violated the crucial support of its 200 DMA, placed at 303. Stock has been an underperformer from large cap private sector bank space for last 1 month. Stock is now trading below its 20,50, 100 and 200 DMA, indicating weakness for short to medium term. Oscillators like RSI, MACD and ADX have turned bearish on the weekly charts. Stock is likely to fill the gap which was formed on 25th Oct 2017 in the price range of 268-284.
We recommend Selling ICICIBANK in the price range of 295-300 for the downside target of 280, keeping SL at 305.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.
Nifty View
Nifty has broken down below the crucial support of 10300, which was derived from the upward sloping trend line on the daily charts. Nifty has also violated the previous bottom support of 10276, registered on 6th Feb 2018. Yesterday, Nifty plunged 225 odd points from day’s high, to close below 10249. Immediate support for Nifty is seen at its 200 DMA, currently placed at 10125.
Also Read
SELL: Hindalco
CMP: Rs 226
Stop Loss: Rs 235
Target: Rs 210
Stock price has recently violated the crucial support of multiple bottoms placed around 132 on the daily charts. Price has also breached the support of its 200 DMA, placed at 237.50. Stock has closed at the lowest level since 21ST Aug 2017. Price witnessed a violation of support along with rise in volumes. Stock has been forming lower tops and lower bottoms on the on the daily chart since starting of this calendar year. Stock has reached below 20,50, 100 and 200 DMA indicating bearish trend on short to medium term charts. Though, the entire month of March is yet to be finished for this quarter ending, there are good chances of stock forming bearish engulfing pattern on its quarterly charts. We recommend Selling Hindalco in the price range of 226-232 for the downside target of 210, keeping SL at 235.
SELL: ICICI Bank
CMP: Rs 295
Stop Loss: Rs 305
Target: Rs 280
Stock has violated the crucial support of its 200 DMA, placed at 303. Stock has been an underperformer from large cap private sector bank space for last 1 month. Stock is now trading below its 20,50, 100 and 200 DMA, indicating weakness for short to medium term. Oscillators like RSI, MACD and ADX have turned bearish on the weekly charts. Stock is likely to fill the gap which was formed on 25th Oct 2017 in the price range of 268-284.
We recommend Selling ICICIBANK in the price range of 295-300 for the downside target of 280, keeping SL at 305.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.
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