Stock calls by HDFC securities: Sell RIL, Escorts

Nifty outlook and technical calls by Vinay Rajani, Technical Analyst, HDFC Securities for today:

Nifty View
Nifty closed at 11,279, the lowest levels on closing basis of the recent down swing started from 11,760. Lower top and lower bottom formation, bearish moving average setup and bearish oscillator setup clearly shows that markets are in a down trend. Next support for Nifty is seen in the range of 11,000-11,100, which is derived from 100 DMA and long term upward trend line on the daily charts. Resistance is shifted down to 11,400 in Nifty. Bank Nifty to likely to test 200 DMA support of 26,100.

Sell Reliance
CMP: Rs 1,217
Target: Rs 1,160
Stop-loss: Rs 1,250
Stock price has closed below its 20-DMA. Bearish head and shoulder breakdown is also seen on the daily charts. Oscillators like RSI and MACD have turned bearish on the charts. We recommend selling Reliance for the downside target of Rs 1,160, keeping SL at Rs 1,250.

Sell Escorts
CMP: Rs 761
Target: Rs 725
Stop-loss: Rs 787
Stock has been forming lower tops and lower bottoms on the daily charts. Auto stocks have been underperforming for last couple of months. After 5 days of consolidation, stock resumed its downtrend with higher volumes, indicates continuation of a bearish trend. We recommend selling Escorts for the downside target of Rs 725, keeping SL at Rs 787.

Nifty outlook and three trading ideas by Chandan Taparia of Motilal Oswal

Outlook:
Nifty index managed to hold its immediate support of 9,850 and headed towards 9,925 mark. It closed above 9,900 and given a highest daily close in last 15 trading sessions. It formed a Hammer candle with bigger lower shadow which indicates that decline is being bought in the market. It has been respecting to its rising support trend line by connecting the swings lows of 9,075, 9,448 and 9,685 mark. Now it has to cross and hold above 9,928-9,950 zones to witness a fresh move towards 10,020 and 10,050 while on the downside supports are seen at 9,850 and 9,820.

Stocks:
MARUTI SUZUKI
Reco: BUY
Last Close: Rs 7700
Stop Loss: Rs 7580
Target: Rs 7920

It has made an intermediate term double bottom at the support of 7,400 levels with the follow up buying interest. It has been holding well above its falling trend line and giving a confirmed sign of reversal in the stock. The decline from the high at 7,920 is now ending and a new leg of uptrend seems to be resuming.

ESCORTS
Reco: BUY
Last Close: Rs 647
Stop Loss: Rs 630
Target: Rs 700

It has surpassed its immediate hurdle of 633 and closed near to its 50 DEMA. Major trend is positive and recent decline is giving fresh buying opportunity.

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Top technical calls for today's trade: Buy Escorts, Glenmark Pharma

STOCK MARKET - Few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

TATA GLOBAL BEVERAGES

CMP: Rs 178.75        
TARGET: Rs 200      
STOP LOSS: Rs 162
The stock after having a small correction has pulled back strongly and the two big positive candles indicate strength and potential to run further upward and scale new targets. The RSI indicator also has given a strong reversal in the trend signaling a buy and with good volume activity visible, we recommend a buy in this stock for an upside target of 198 keeping a stop loss of 160.

ESCORTS - BUY  
CMP: Rs 611.55        
TARGET: Rs 665      
STOP LOSS: Rs 560
The stock has made a lower bottom formation pattern in the daily chart and now it has recovered strongly to make a pullback rally. We anticipate further upward movement in the coming days and with RSI indicator also making a positive trend reversal and with decent volume participation, we recommend a buy in this stock for an upside target of 665 keeping a stop loss of 560.

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