Nifty outlook and top trading ideas by Sacchitanand Uttekar, AVP – Technical (Equity), Tradebulls:
Nifty Outlook: Post breaking out from the ‘Inverse Head & Shoulder’ formation, Nifty witnessed a smart sustained up to move towards its price target placed near 10420-10440 zone. Though the index has not witnessed any meaningful reversal sign yet but the narrow ranged bodies off late are a concern indicating exhaustion of momentum. On the daily scale, the index witnessed another small body formation with a long wick which could be an early sign of developing weakness as intraday oscillators are showing divergence. Hence though there are no signs of any reversal or major weakness yet but its proximity towards the likely resistance zone due to the pattern price targets it could unfold some consolidation / minor weakness for the coming sessions. Expect index to gyrate within 10440-10300 before the next move commences. Traders should refrain from any major leveraging & deploy range bound strategies for the day.
Stock: CIPLA
Reco: Buy
CMP: Rs 561
On the daily scale the stock witnessed a ‘Harami Cross’ formation near its 50% retracement support zone of its prior impulse move. A breach above 566 could unfold momentum & push the stock towards its 200 DEMA placed near 585 zone. Hence trading longs could be considered above 566 with a stop below 558 for a short term target upto 585.
Stock: IGL
Reco: Sell
CMP: Rs 294.70
Negative sector outlook & occurrence of a ‘Bearish Engulfing’ formation on the daily scale. Pullback if any back towards 296-298 should be utilised to create shorts with a stop above 304.30 for an initial target upto 282 where its 200 DEMA is currently placed.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above