Decisive hold above 9,218 can push Nifty to life-time high: Chandan Taparia

The downside supports on Nifty are seen at 9,191 and 9,135, says brokerage Motilal Oswal

Outlook:

Nifty index opened positive and rallied by around 100 points towards 9,225. It formed a Bullish candle on daily chart and closed near its falling supply trend line. It made a strong conviction bar indicating buyers are firmly in control of the market. Now a decisive hold above 9,218 could lead the index towards new life-time high territory of 9,280, while on the downside supports are seen at 9,191 and 9,135.

Stocks:

VOLTAS

Reco: BUY

Last Close: Rs 415

Stop Loss: Rs 407

Target: Rs 435

Price action in Voltas shows a sharp uptrend. Prices see a corrective decline and this decline is now taking support at the rising trend line. The overall capital goods sector is seeing a revival of fortunes. With this stock in a sharp intermediate uptrend, higher levels are possible. We recommend a buy for a target of Rs 435 with a stop below Rs 407.

  

DABUR

Reco: BUY

Last Close: Rs 293

Stop Loss: Rs 284

Target: Rs 305

The stock is making higher top-higher bottom formation on weekly chart and is holding the gains post its major trend line breakout.

L&T

Reco: BUY

Last Close: Rs 1732

Stop Loss: Rs 1705

Target: Rs 1780

Given a breakout from its Pole and Flag pattern on daily chart and trading at multiple months high levels. Positive sector outlook and accumulation of longs are supporting the stock to head to higher levels.

Disclaimer: Motilal Oswal Securities ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.

Chandan Taparia is a Deivatives and Technical Analyst at Motilal Oswal Securities.