Nifty outlook and top trading ideas from Sacchitanand Uttekar, DVP – Technical (Equity), Tradebulls Securities
Nifty is consolidating its earlier gains between 10600-10900 ranges. The base for the index seems to be shifting higher as prices oscillate around 200 DEMA. Daily RSI is intact above 50 levels while positive crossover of 5 & 20 EMA on weekly scale bodes wells for a follow-through move on the upside initially targeting 11150 levels. Since the start of fresh upside impulse wave in 2012; January bodes well for bulls with average gains of around 3.20%. The setup looks promising enough for momentum to kick in once index manages to breach above 11000 psychological resistance levels hence the action remains to deploy longs at every opportunity until 10440 levels hold as valid support while the ongoing move could see an initial movement towards 11150 soon.
CMP: Rs 90
The stock is bouncing from “Double Bottom” formation from recent lows around 75 levels and is gaining momentum on the upside. Daily RSI has crossed above 50 levels & its signal line hence the setup looks ideal for momentum to kick in for an extended move till 99 levels in coming sessions. Traders can initiate long positions targeting 99 levels with a stop placed below 85 levels.
Stock: YES BANK
CMP: Rs 184.50
The setup indicates the stock is being accumulated in ranges of 176-187 after the recent crash in stock prices from highs around 400 levels. Daily RSI is back above 50 levels and above its 9 EMA suggests underlying strength building up for a larger move on the upside targeting 199 & 208 levels in coming sessions. As accumulation pattern continues along with prevalent positive divergence on weekly scale; the stock could witness a spurt in momentum once out of accumulation zone. Trading longs can be deployed in the stock targeting 208 levels with stop placed below 176 levels.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.