Wednesday, 9 August 2017

Nifty may extend fall towards 9,700-9,750 in coming days: HDFC Securities

technicals

STOCK MARKET - Top trading ideas by Devarsh Vakil & Vinay Rajani, technical analysts (PCG desk) at HDFC securities:

Nifty Outlook
Nifty has breached crucial support of its 10 Days EMA, indicating short term bearish trend reversal in the Index. Oscillators like RSI and MACD have turned bearish on the daily charts.  Advance decline ratio of 1:4 of yesterday indicates weak market breadth. Recent high made at 10,138 would continue to remain resistance for the short term. Technical evidences suggest that Nifty is likely to extend the fall towards 9,700-9,750 in the coming days.

Buy JSW STEEL
CMP: Rs 230.85
Stop loss: Rs 220
Target: Rs 249

Metal as a sector has been outperforming for last many months. JSW Steel has been registering new all-time highs with fair volumes on the bourses. Stock has been forming higher tops and higher bottoms on the long term charts. In the Month of July 2017, Stock surpassed the crucial multiple top resistance of 210 with higher volumes. Short term moving averages are placed above long term moving averages, indicating bullish momentum in the stock. Considering the technical evidences discussed above we recommend buying the stock between Rs 231 and Rs 224, for the target of Rs 249, keeping stop loss at Rs 220.

Buy Muthoot Finance
CMP: Rs 480
Stop loss: Rs 452
Target: Rs 525

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