Mileen Vasudeo top 2 trading ideas in this market

Mileen Vasudeo, Senior Technical Research Analyst, Arihant Capital Markets, says “for Reliance, Rs 2,290 is a very crucial level. If in today's trading session, it gets broken, then we could see some kind of a downtick in Reliance. The second stock, which is HDFC Bank, is also not looking strong on the chart. Clearly, it has taken a resistance at the 10-day moving average line at 1499 levels and now it is going on the lower side but once the level of Rs 1,450 is being broken, then we could see some kind of a selling pressure in HDFC Bank which could lead HDFC Bank to 1430, 1400 levels.”

After Thursday's low, we had recovered quite a lot of ground, so some profit taking was expected. It is coming out. But how would you trade right now and what would be your trading ideas?
The 150-day moving average line is somewhere around 18,939 and from there for three days we are continuously going on the higher side. Now, if you see this is a typical downtrend because when Nifty had broken the levels of 19,300, it entered into a lower top, lower bottom formation. Now in a lower top, lower bottom formation, Nifty starts pulling back from the lower levels. Now three days of a bounce back we have got but now again we need a strong session with good volumes.

If that is possible, then yes this could be an intermediate bottom. But at present, I would be a little bit cautious. But there are some pockets of stocks which are looking good on the charts. I would recommend Persistent. Currently one can buy Persistent at current levels and keep a stop loss of Rs 6,000. On the higher side, you could see Persistent testing the level of Rs 6,395 and Rs 6,530. The second stock is NAM India Limited, currently trading at 387 somewhere and one can keep a Rs 27 stop loss that is 360. On the higher side, I expect the stock to test the levels of Rs 439 and Rs 455 in a couple of days' time.

What is your view on some of the largecap stocks which were responsible for bringing market back from 18,800 odd. Reliance Industry and HDFC Bank. Do you think that pullback is getting over and should one now book profit if one did participate from those levels? What are the charts telling you about that?
Clearly, in Reliance, for three days we have pulled back no doubt but the 50-day as well as the 20-day and 10-day moving average, are falling. The trend is clearly on the lower side and if today's trading session is on the negative side and if it breaks the previous day low, that is today's low, then yes you see some kind of selling in Reliance Industry also.

But at present, for Reliance, Rs 2,290 is a very crucial level. If in today's trading session, it is being broken, then yes you could see some kind of a downtick in Reliance. The second stock, which you said is HDFC Bank. That stock also is not looking strong on the chart. Clearly, it has taken a resistance at the 10-day moving average line at 1499 levels and now it is going on the lower side but once the level of Rs 1,450 is being broken, then we could see some kind of a selling pressure in HDFC Bank which could lead HDFC Bank to 1430, 1400 levels.