Trading ideas by HDFC Securities: Buy Oberoi Realty, Avenue Supermarts

On June 3, Oberoi Realty's stock surpassed the crucial double top resistance of 630 on a closing basis

Nifty outlook

Nifty is in to continuation of an uptrend and is gradually moving towards the 16,000 psychological level. Support for the Nifty has now shifted upward to 15,700. BankNifty has resumed its uptrend after two weeks of underperformance against Nifty. BankNifty is expected to move towards the next targets of 35,810 and 36,500 in the coming weeks. Support for the BankNifty has shifted up to 34,750.

Recommendations

Buy Oberoi Realty (Rs 650): | Target: Rs 780 | Stop-loss: Rs 600

On June 3, the stock surpassed the crucial double top resistance of 630 on a closing basis. Volumes have been building up in the stock for last three weeks, along with the price rise. Realty sector has started getting traction in the last one month. Oberoi Realty is one of the best placed stocks from the real estate sector, technically. The stock is placed above all important moving averages, indicating bullish trend on all time frame. Indicators and oscillators have turned bullish on weekly and monthly charts

Buy Avenue SuperMarts (Rs 3,358) | Target: Rs 3,799 | Stop-loss: Rs 3,000

The stock price has broken out from last seven sessions' narrow consolidation. it has also taken out the crucial resistance of its down ward sloping trend-line on the daily chart. Volumes during the breakout remained significantly higher than its 10 day-average volumes. Primary trend of the stock has been bullish as the stock has been forming higher tops and higher bottoms on the daily and weekly charts. The stock is placed above medium to long term moving averages, indicating bullish trend on all time frames.

Indicators and oscillators on weekly and monthly charts have turned bullish.

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Disclaimer: Vinay Rajani is a Senior Technical and Derivative Research Analyst at HDFC Securities. The analyst doesn't have any holding in the stock. Views are personal