Nifty Outlook and top trading ideas by HDFC Securities

Nifty outlook and top stock pick by Vinay Rajani, Technical Analyst, HDFC Securities: Hold Longs in Nifty with a Stop loss of 10600; Target 10883

Nifty has been moving in 100 odd points range for last 5 trading sessions.  Outperformance from the Bank Nifty continued to be there with the Bank Index reaching above 26100 during Tuesday’s session. Trend of the Nifty is still bullish and longs should be held for the upside target of 10883, keeping a stop loss at 10600. 

BUY ASTEC LIFESCIENCE

CMP: Rs 696

Stop Loss: Rs 650

Target: Rs 770

Stock price has given breakout from the consolidation on the long term quarterly charts. Stock was moving in the range of 500-700 for last 6 quarters. On the month ending April 2018, stock surpassed the crucial resistance of 700 with significant jump in volumes. Primary trend has been up with higher tops and higher bottoms.  Oscillator and moving averages setup is bullish. We recommend buying Astec Life for the upside target of 770, keeping SL at 650.

BUY VARUN BEVERAGES

CMP: Rs 697

Stop Loss: Rs 665

Target: Rs 760

In the current Month of May 2018, stock price has broken out from downward sloping channel on the monthly chart. Volumes have gone up nicely in the recent past along with the price rise. Stock price is on the verge of registering new all-time high above 759. Company has also come out with a decent quarterly numbers recently. After two days of small correction, stock is all set to resume its uptrend. Oscillators like MACD, RSI and DMI have been showing strength in the existing bullish strength. We recommend buying Varun Beverages for the upside target of 760, keeping SL at 665.

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