Nifty outlook and top stock picks by Motilal Oswal Securities

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Nifty outlook and top trading ideas by Chandan Taparia, Derivatives & Technical Analyst, Motilal Oswal Securities:

Nifty Outlook :
Nifty index formed a higher wave Doji Candle as traded in a wider range of 10514 to 10638 level. It witnessed buying interest in morning but it decline in last hour of the session. It witness profit booking at higher levels as it got stuck in the grip of option writers ahead of the April derivatives expiry. Now till it remains above 10480-10500 zones, it has potential to move towards 10630 then 10700 levels.

Stocks:

DALMIA BHARAT

Reco: BUY

Last Close: 3002

Stop Loss: 2942

Target: 3125

Consolidation breakout after eleven weeks, trading above 50 and 200 EMA  which indicates strength.

AUROPHARMA

Reco: BUY

Last Close: Rs 643

Stop Loss: Rs 630

Target: Rs 670

Pole and flag breakout with rising volume and RSI above 60.

ZEEL

Reco: BUY

Last Close: Rs 595

Stop Loss: Rs 583

Target: Rs 620

Small triangle breakout and given highest close from last ten weeks.

BULL CALL LADDER SPREAD:

BUY 1 LOT OF  10550 CALL @ 54 POINTS

SELL 1 LOT OF 10600 CALL @ 30 POINTS

SELL 1 LOT OF 10650 CALL @ 14 POINTS

NET PREMIUM PAID : 10 POINTS

MAXIMUM PROFIT 40 POINTS IF IT EXPIRES IN BETWEEN 10600 TO 10650

UNLIMITED RISK IF IT EXPIRES ABOVE 10690

HEDGE : BY BUY FUTURE IF IT GOES ABOVE 10680



RATIONALE:

Maximum put oi is intact at 10500 strike which could hold the market on decline
 

Intact call writing at 10650-10700 could restrict its upside move

 

Thus, suggesting bull call ladder spread to play the positive to range bound 

The analyst may have positions in any or all the stocks mentioned above.

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