Top trading ideas for today's trade: Sell Tata Motors and DLF

Nifty outlook and top trading ideas by Sacchitanand Uttekar, AVP – Technical (Equity), Tradebulls:

 

NIFTY OUTLOOK:

 

On the 180 min scale as expected the index faced resistance near the upper bound of the ‘Descending /Declining Channel’. The three days sequence of higher tops & higher bottom has been distorted. Traders should maintain shorts with a stop above 10340 with an expectation of a decline towards 10000-9940. With the rising volatility and the latest upward shift in the range of India VIX sustenance above 15.50 level could propel it towards 17.50 in no time. Due to its high correlation with the Index coupled with Rising crude prices & weakness in rupee could be fatal for the markets from hereon. Investors should adequately hedge their positions during this highly uncertain time & await for a meaningful correction /decline to phase out first & only position themselves once a firm reversal sign is established to add longs. 

 

DLF - SELL

CMP: Rs 228

STOP LOSS: Rs 237.30

TARGET: Rs 210

 

Breakdown from a ‘Rising Wedge’ formation on the daily scale with volumes indicate a move towards the pattern target placed near 210. Short positions could be considered within the range of 230-232 with a stop loss above 237.30 for a trading target upto 210.

 

TATA MOTORS - SELL

CMP: Rs 402

STOP LOSS: Rs 412.30

TARGET: Rs 380

 

Since December 2016, Tata Motors has been oscillating within a declining channel formation. Weekly RSI slipping below 50 indicates weakness to persist in the coming weeks. Fresh shorts could be initiated with a trading stop above 412.30 for an initial target upto 380.

 

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