Nifty outlook and few trading ideas by Sacchitanand Uttekar, AVP – Research & Data Analysis at Tradebulls.
Nifty Outlook:
The broader market trend remains intact so far as 8,860 holds on the intermediate scale but some signs of fatigue is visible on the immediate scale. The occurrence of a ‘Hanging Man’ formation along with a negative divergence on the RSI augurs well for the ongoing time & price correction. For the coming week we expect 9,140 to act at a crucial level for gauging momentum & a sustained breach below the same could push the indices lower towards 9,000. With the expectation of the broader market trend remaining intact correction if any towards the support zone near 9,050 could provide an excellent opportunity to add longs. Hence it would be wise to remain cautiously optimistic but leveraged longs could be reduced for time being or should be adequately hedged to counter the upcoming volatility during the earnings season. Therefore we do not expect a runaway rise in Nifty in the coming week & expect it to trade in a range of 9,000-9,400.
UPL - BUY
Stop Loss: 714
Target: 785
Secular uptrend on the long term scale to remain firm. The ongoing consolidation on the immediate scale now looks mature & a breach above 750 could accelerate the bullish momentum. Hence we recommend buying the stock with a trading stop below 714 for a target up to 785.
CEAT - BUY
Stop Loss: 1,372
Target: 1,640
The recent breakout from the Rounding formation on the daily scale is well supported with volumes. The breakout has activated the pattern indicating an initial price target up to 1,640. We expect the stock to witness outperformance in the coming weeks & hence we recommend to accumulate with a stop below 1,372.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.