Top trading ideas for today's trade: Buy Engineers India and Hindalco

Nifty outlook and few trading ideas by Sacchitanand Uttekar, Asst.Vice President - Research Technicals (Equity), Tradebulls Securities:

Nifty Outlook: Nifty sheds of its gains ahead of the ‘Big Bang Event’ as it follows the footsteps of the global indices. With no major reversal ahead of the event there is a good probability of the continuation of the existing trend. Historically the event has witnessed approx. 3-3.5% deviation from its mean & hence the probable range ahead of the event is witnessed around 11,400-10,700. Technically the index has been overbought on the daily scale for a while but there are no traces of any developing divergence on the trend strength indicators. Hence it’s likely that a breach above 11,130 could amplify the momentum while any move below 10,830 could be alarming. Traders should not leverage until a decisive breach is not witnessed on either side of the range.

 

 

Stock: ENGINEERS INDIA

Recommendation: Buy

CMP: Rs 177.50

 

The ongoing flat corrective wave seems to be terminating around Rs 175-170  which is also proximal to its 200 DEMA. The ongoing consolidation near its recent SPIKE formation also warrants the probable bottom formation & hence longs could be initiated with a stop below Rs 165 for an initial target up to Rs 215.

 

Stock: HINDALCO

Recommendation: Buy

CMP: Rs 256

 

Secular uptrend on the longterm scale & the occurrence of a Spinning Top formation on the weekly scale compliments the bullish structure. Trading longs could be considered with a stop below Rs 245 for an immediate move towards Rs 278.

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