Nifty outlook and stock picks from Chandan Taparia at MOSL

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Here are a few trading ideas by Chandan Taparia, Derivatives and Technical Analyst & PFA at Motilal Oswal Securities:

Nifty Outlook:

 

Nifty index continued its losing streak for third consecutive session and corrected towards 9,120. It recovered well from lower levels and formed a Doji candle on the daily chart as closed near to its opening levels. Occurrence of Doji after the recent profit booking indicates that follow up selling is missing and decline is being bought in the market. Now it has to cross and hold above 9,165 to witness an up move towards 9,218 and 9,250 while on the downside supports are seen at 9,090 and 9,050 levels. Index is trading below its support trend line by connecting lows of 8,712, 8,903 and 9,024 but almost completed its 61.80% retracement of the recent upswing from 9,019 to 9,274.

 

Stocks:     

 

IndiaBulls Housing Finance

Reco: BUY

Last Close: Rs 977

Stop Loss: Rs 944

Target: Rs 1,020

 

It has taken support at rising trend line and negated the formation of lower highs of last six trading sessions. It also completed its 50% retracement of the upswing from 835 to 1,107.

 

Reliance Industries

Reco: BUY

Last Close: Rs 1,391

Stop Loss: Rs 1,365

Target: Rs 1,440

 

It has negated its lower highs – lower lows of last five trading sessions and surpassed its falling supply trend line on the daily chart. Major trend of the stock is positive and recent decline is giving a fresh opportunity to buy the stock. Thus, recommending to buy with the trading stop loss of 1,365 for a potential upside target of 1,440.

 

Chandan Taparia is a Deivatives and Technical Analyst at Motilal Oswal Securities.


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