Few trading ideas by Chandan Taparia, Derivative & Technical Analyst at Motilal Oswal Securities:
Nifty index opened positive and made a new record lifetime high of 10,171. It surpassed previous lifetime high of 10,138 and registered a highest daily close above 10,150. It formed a Bullish candle with a gap away pattern which indicates that bulls have jumped the supply zone. Now index has to continue to hold above 10,138 to extend its move towards 10,200 then 10,270 zones while on the downside supports are seen at 10,050 and 10,020 zones.
Last Close: Rs 3950
Stop Loss: Rs 3900
Target: Rs 4050
It has taken support near its 50-DEMA and formed a reversal pattern on the daily chart. Nifty Auto index is showing strength and this stock also looks attractive in terms of risk-reward ratio.
L&T Finance Holdings
Last Close: Rs 209
Stop Loss: Rs 202
Target: Rs 220
It is in a strong rising trajectory as it has been making higher top-higher bottom on weekly scale. The decline from the high of Rs 209 was on lower volumes and it formed a flag pattern which is a bullish continuation pattern.
Last Close: Rs 543
Stop Loss: Rs 530
Target: Rs 570
It has bounced sharply after re testing its breakout zones and holding above its rising support trend line on daily scale. Major trend is positive and recent consolidation provides a better risk-reward ratio.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.