Nifty outlook and top trading ideas from Sacchitanand Uttekar, DVP – Technical (Equity), Tradebulls Securities:
Nifty has commenced its fresh impulse wave post establishing a strong swing at 10360 which could act as a base for the expected elevated up move. It has close above its 200 DEMA with its Daily RSI again climbing above 50 with a positive crossover indicating momentum to continue. The rally so far from the recent lows has been with broad based too along with the large caps leading from the front. Fresh writing at 10400 PE reaffirms the strength in the base while the price wave indicates a move beyond 10900 towards 11100 which could be in the offing. Traders should maintain their long bias with a stop below the 10440 & await for any exhaustion signs once above 10900.
CMP: Rs 2016
‘Double Bottom’ formation been established at its 200 DEMA followed by a mature continuation formation (Flag pattern) on the daily scale, the evidence is good for a sustained move towards 2088/2140 soon. Trading longs could be added with a stop below 1955
Stock: TATA STEEL
CMP: Rs 520
Occurrence of a Bullish Hammer formation on the daily scale reconfirmed the base around 490-480. The follow through move could extend further as indicated by its momentum indicators. Trading longs should be added with a revised stop now at 508 for an initial up-move towards 560 (Retracement resistance of its previous declining move)
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.