Nifty outlook & stock calls by Anand Rathi: Buy Wipro, Sun Pharma

Wipro's stock has provided breakout from a symmetrical triangle formation on the daily chart with higher than average volumes

BUY NIFTY | TARGET: 10,950 | STOP LOSS: 10,700

The Nifty index is in a consolidation mode where the support is continuously shifting higher. The momentum indicators and oscillators are very well in the 'buy' mode on a weekly scale, which hints that bulls are tightening the grip and the current pullback is likely to extend further. The volatility index, IndiaVIX, is hovering near 25 levels which is giving comfort to the bulls. Thus, aggressive traders can initiate a long position with the strict stop loss of 10,700 and defensive traders should refrain from creating any aggressive bets in the index from here on and adopt a stock-specific approach.

BUY WIPRO | TARGET: Rs 245 | STOP LOSS: Rs 220

The stock has provided breakout from a symmetrical triangle formation on the daily chart with higher than average volumes. It is also taking constant support at its 21-day short-term moving average. The momentum oscillator MACD has also provided fresh buy crossover on the daily chart, which hints at the likelihood of the positive momentum to continue in the short term.

BUY COLPAL | TARGET: Rs 1,500 STOP LOSS: Rs 1,395

The stock is making a higher top and higher bottom pattern on the daily chart and has also provided a major breakout from its 2-month consolidation. It is also trading well above its short-term and long-term moving averages. The momentum indicator and oscillator are well in the buy mode on the daily as well as weekly scale.

BUY SUNPHARMA | TARGET: Rs 520 | STOP LOSS: Rs 484

Sunpharma has provided a breakout from a symmetrical triangle formation on the daily chart. It is also taking the support of its 21-DMA which is also placed near 484 levels. The MACD has provided fresh buy crossover on the daily chart. The momentum indicator RSI is also moving higher which hints that current rally is likely to continue further. The overall Pharma sector has again started moving higher after pausing for the past couple of weeks.

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Disclaimer: Nilesh Jain is Technical and Derivatives Research Analyst at Anand Rathi Shares and Stock Brokers. He may have positions in one or all of the above mentioned stocks. Views are personal.