Nifty outlook and top trading ideas from Sacchitanand Uttekar, DVP – Technical (Equity), Tradebulls Securities
Nifty continued its upward journey moving past 10900 levels as expected. The index is comfortably trading above its 200 DEMA with Daily RSI yet to witness overbought levels suggesting a further room on the upside till 11150 levels. Fresh writing at 10800 PE reaffirms the support moving higher and underlying bullish strength building up with broader participation. The index closed above its previous peak of 3rd Dec at 10941 with no visible signs of exhaustion hence traders should maintain their long bias with a stop below the 10440 as a move towards 11150 which could be in the offing in coming sessions.
CMP: Rs 785.90
The stock is bouncing from “Double Bottom” formation from recent lows around 690 levels and is gaining momentum on the upside. Daily RSI has crossed above 50 levels along with a positive crossover and price closing above 50 DEMA for the first time since breach below this September augurs well for further upward move till 830 levels in near future. Trading longs can be initiated with stop below 760 price confluence support for test of 830 levels.
CMP: Rs 1547
Break out and close above “Tripple Top” resistance around 1530 levels could accelerate the move on the upside for the stock in coming sessions. Strong bullish candle line after a gap up opening along with heavy volume suggests the stock might witness further push higher on back of short covering. Daily RSI above 50 levels and no visible signs of exhaustion on breakout makes the stock an ideal candidate for initiating longs for the test of 1615 levels in coming sessions.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.