Top trading ideas by Tradebulls Securities: Sell ITC, buy HPCL

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

Nifty Outlook:

Nifty continues its drift towards its 200 DEMA placed around 10800. The occurrence of multiple hammers displaying stability would be considered void once the index breaches below 10780. The patterns require a confirmatory close above 11040 for any pullback move to mature towards 11220. On the other hand, the fresh breakout in INDIA VIX indicates an upward shift in range & could see a movement towards the upper bound placed around 20.50-22 soon. As the broader trend remains weak slippages below 10800 could be impulsive & push the index towards 10281 zone. Hence traders should continue to retain their shorts until & firm reversal sign is not confirmed on the weekly structure.

Stock: ITC

Reco.: SELL

CMP: Rs 533

ITC has been oscillating within the downward sloping channel formation. On the daily scale, the current candlestick formation resembles a Falling Three formation which indicates a likely breakdown from the ongoing channel pattern. We expect the stock to decline towards its 200 DEMA placed near 282; hence fresh shorts could be deployed with a stop above 303 for an initial target towards 282.

Stock: HPCL

Reco.: BUY   

CMP: Rs 584

Positive sector outlook & occurrence of a Bullish Engulfing formation on the daily scale confirms the strength in the support zone near 235-240. Expect the stock to outperform in the near term & even trading longs could be considered for an immediate swing towards 275 with a stop below 240.

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