Top trading ideas for today's trade: Buy Tata Motors, Amararaja Batt

Nifty outlook and top trading ideas by Sacchitanand Uttekar, deputy vice president - technical (equity) at Tradebulls

Nifty Outlook:

The rebounded from the critical support zone near 10625 indicates a movement towards 10910 (78.6% retracement level of its previous decline from 11172 to 9952). With no major sign of weakness & a good stock / sector rotation sequence it is likely that the index should hold its bullish structure throughout the week. Traders should maintain their longs with a stop now below 10625 & await for an extended move towards 10910 which could unfold next week. Until then expect some consolidation within the range of 10650-10780 for a while.

Stock:    TATA MOTORS

Reco.:   Buy

CMP :    Rs 342

Occurrence of a bullish harami formation at on the monthly scale near the 78.6% retracement support of its previous impulse upmove, reconfirms the strength in the support around 330. The recent rebound from the said support augurs well for a fresh directional momentum in the offing. Short term longs could be considered around 340 with a stop below 324 for an immediate move back towards 385.

Stock:    AMARARAJA BATT.

Reco.:   Buy

CMP :    Rs 888.40

Convergence of the long term averages on the monthly scale exhibits directional momentum to be witnessed soon. On the daily scale the ongoing consolidation looks mature for an upmove towards 940 levels. Trading longs could also be initiated with a stop below 855.30.

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