Nifty is headed towards 11,800, says Vinay Rajani of HDFC Securities

 Nifty is headed for the upside target of 11,800

From the bottom of 10,790 registered on September 24, 2020, Nifty saw a sharp recovery towards 11,680. The index has registered a rise of almost 900 points from the recent bottom in the span of just 7 trading sessions. Nifty has surpassed the previous top resistance of 11,618 on the daily chart. Support for the Nifty is shifted up to 11,400, which should be kept as a stop loss in long positions. The upside target for Nifty is seen at 11,800 odd levels.

BUY CEAT LTD (1019.65) | Target: Rs 1,120 | Stop loss: Rs 970

The stock has broken out from multiple downward sloping trend-lines on the weekly charts. Volumes have been rising along with the price rise for last 6 weeks. The stock price has surpassed the previous top resistance of Rs 976. Bullish rounding bottom formation is seen on the weekly charts, indicating continuation of an uptrend. It has been finding support on its 20 weeks EMA for last couple of months. Trend Breakout is registered by RSI on the weekly charts, indicating fresh up move. Weekly MACD is trading above its signal and equilibrium line

BUY JSW STEEL (291.50) | Target: Rs 312 | Stop loss: Rs 278

The stock price is on the verge of giving breakout from the consolidation which held for last 6 week between 292 and 268. It is trading above all important moving averages indicating uptrend on all time frames. Indicators and oscillators have turned bullish on weekly and monthly charts. Metal sector has resumed its primary uptrend.

Today's picks: Hero to Tata Motors, hot stocks to watch on Wednesday

Nifty

Current: 11,992 (fut: 12,019)

Target: NA

Stop long positions at 11,920. Stop short positions at 12,120. Big moves could go till 12,250, 11,750. Trend seems negative. A long Feb 27 11,900p (47), short 11,800p (26) could gain 10-15 if the index drops below 11,900.

Bank Nifty

Current: 30,562 (fut: 30,625)

Target: NA

Keep a stop at Rs 793 and go long. Add to the position between Rs 806-809. Book profits at Rs 810.

Hero MotoCorp

Current: Rs 2,253

Target: Rs 2,225

Keep a stop at Rs 2,265 and go short. Add to the position between Rs 2,230-2,235. Book profits at Rs 2,225.

Tata Motors

Current: Rs 162 

Target: Rs 158

Keep a stop at Rs 164 and go short. Add to the position between Rs 159-160. Book profits at Rs 158.

Target prices, projected movements in terms of next session, unless otherwise stated

Nifty outlook and top stock picks by CapitalVia: Buy Vedanta, HUL

Markets traded with positive sentiments on Friday as bulls took charge; Nifty settled above 12,200

Market opened with positive note and remained trending throughout the session which pushed nifty above 12,250 on January 24, and closed at 12,248.30 adding 67.90 points. Metal, Media and FMCG stocks traded with positive sentiments through the day whereas, pharma and IT stocks witnessed pressure on Friday session. Nifty bank closed at 31,241.80 adding 226.79 points from the previous day’s closing.

As per weekly option data, huge put writing on lower strikes ranging from 12,000 to 12,200 is observed which shows Nifty is witnessing strong support in the sub-12,200 zones. Market is likely to trade in range of 12,200 to 12,300 until 12,300 level is not breached, as it holds highest call OI in January monthly series. Traders should try to buy at dips keeping close eye on 12,200 level as it holds second highest put OI for the weekly expiry after 12,200 strike. However, if nifty is able to breach level of 12300, it might lead to short covering move up to 12,350.

We can see a big momentum in following stocks:

Buy: Vedanta Limited (Above Rs 157.20)

Target: Rs 166.20

Stop loss: Rs 151.80

The stock is sustaining on major moving averages in daily chart and witnessing a bounce back from its important moving averages, breaching this level could result in good upside momentum. Considering the technical evidence discussed above, we recommend buying the stock above 157.20 for the target of Rs 166.20, keeping a stop loss at Rs 151.80 on closing basis.

Buy: Hindustan Unilever Limited (Above Rs 2,080)

Target: Rs 2,150

Stop loss: Rs 2,034

Stock is trading above major resistance level in daily charts, stock is forming a bullish flag pattern and from the levels of 2,075 will lead to a bullish movement. We recommend buying the stock at 2,080 for the target of Rs 2,150, keeping a stop loss at Rs 2,034 on closing basis.

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Disclaimer: The analyst does not hold position in any of the stocks mentioned above.

Nifty crosses 12,300-mark on easing tensions, Sensex up 147 points

The Nifty rose and breached the 12,300-mark for the first time, on Friday, as crude oil prices eased further on the back of easing US-Iran tensions. The benchmark rose as much as 12,311, before ending the session at 12,257 — a gain of 41 points or 0.33 per cent.

The Sensex, on the other hand, rose 147 points and closed the session at 41,600, an increase of 0.36 per cent.

Friday’s rise helped the indices mark their first weekly gain in three weeks. On Thursday, the indices posted their biggest gain in three months following an ease in crude oil prices, which fell on the hopes of de-escalation in US-Iran tensions.

“What’s also working in favour of equities are lacklustre alternative asset classes and a supportive global risk-on trade,” said Amar Ambani, head of research (institutional equities), YES Securities.

Analysts said that with easing geopolitical tensions, investors will be closely watching the third quarter earnings and the US-China tariff deal next week.

ChartMarket players said the earnings and management commentaries would give investors insight into corporate health at a time when the economic growth is the slowest in years.

Advance estimates released by the statistics ministry on Tuesday pegged GDP growth for FY20 at 5 per cent.

Coal India, Tata Motors and Infosys were the biggest gainers in Nifty.

Foreign portfolio investors or FPIs were net buyers of equities worth Rs 578 crore, while domestic institutional investors or DIIs were net sellers to the tune of Rs 251 crore.

Nifty Realty index hits 52-wk high; DLF, Sunteck, Oberoi Realty up over 2%

Shares of real estate companies advanced at the bourses on Thursday, gaining up to 6 per cent on the National Stock Exchange (NSE), after the State Bank of India (SBI) launched a Residential Builder Finance with Buyer Guarantee (RBBG) scheme to safeguard home buyers financially.

Sunteck Realty, Indiabulls Real Estate, DLF and Oberoi Realty were up more than 2 per cent each on the NSE in the intra-day trade today. Meanwhile, Sobha, Mahindra Lifespace Developers, and Godrej Properties gained in the range of 1 to 2 per cent.

Nifty Realty index, too, hit a 52-week high of 303.35 today, up 2 per cent on the NSE. The index surpassed its previous high of 302.40 touched on January 2, 2020.

On Wednesday, SBI announced RBBG to safeguard home buyers financially by issuing guarantee for completion of projects to customers availing SBI Home Loans. 

"With this, customers will be able to secure their investment in the ongoing home projects financed by the bank itself. RBBG will focus on affordable housing segment with home price of up to Rs 2.5 crore in seven Indian geographies initially. Under this product, all reputed builders fulfilling the prescribed criteria by the bank can avail loan between Rs 50 crore to Rs 400 crore. The criteria include Star rating and CIBIL score," SBI said in a statement.

SBI and Sunteck Realty have entered into a Memorandum of Understanding (MoU) which is the first step towards boosting the residential housing sector under the Bank’s “Sapna Aapka – Bharosa SBI Ka” scheme with bank guarantee to home buyers under the Builder Finance scheme. Following the news, the stock of Sunteck Realty surged 6 per cent to Rs 450 on the NSE in intra-day trade today.

In the past three months, Nifty Realty index has outperformed the market by surging 21 per cent, largely driven by DLF -- which delivered 59 per cent returns. In comparison, the benchmark Nifty 50 index was up 7.6 per cent during the same period.

"Whilst residential markets remain muted, cap rate compression has started reflecting in stock prices. Though there is a marginal recovery in the premium segment viz. Gurgaon for DLF and in pockets of Mumbai, the overall sentiment still remains muted," according to analysts at HDFC Securities.

“On the back of Government measures to revive real estate, buying sentiment is improving which may drive overall demand over the next few quarters. The commercial leasing is robust and vacancy is reducing, while developers planned fund raising over the next one year will result in deleveraging,” the brokerage firm said in Q3 results preview.

Two stocks that Vaishali Parekh of Prabhudas Lilladher is bullish on

NIFTY VIEW

The daily trend in Nifty and Bank Nifty still continues to be down, even after a good bounce by the Nifty to close at 12,245, while weekly trend continues with its uptrend. The support for the week is seen at 40,840/12,000 for Sensex and Nifty,respectively, while resistance is seen at 42,200/12,450. Bank Nifty would have a range of 31,670-33,040. SBI, Axis Bank, ICICI Bank, etc have got in new round of momentum and look positive for the coming days. Automakers and ancillary stocks like Bosch look positive. It's the time to focus on media sector - Zee, Sun TV, PVR, etc. Bias once again turns positive.

BUY COAL INDIA

CMP: Rs 203.50

TARGET: Rs 220-230

STOP LOSS: Rs 188

The stock has almost formed a double bottom pattern at near Rs 183 levels and has given a decent bounce back with also the relative strength index (RSI) getting stronger and stronger and it has implied strength for further upside movement in the coming days. The bias is positive with favourable indicators and we suggest to buy and accumulate this stock for an upside target of Rs 220 -230 levels keeping the stop loss near Rs 188.

BUY ONGC

CMP: Rs 128.40

TARGET: Rs 145-150

STOP LOSS: Rs 120

The stock has been in a gradual correction mode and has bottomed out near Rs 124 levels maintaining a good support base and currently has given a bullish candle pattern to imply strength and we anticipate further upside move in the coming days. Besides, the relative strength index (RSI) indicating a trend reversal to signal a buy. We suggest to buy and accumulate this stock keeping the support near Rs 120 levels for an upside target of Rs 145-150 levels.

Nifty Outlook and top trading ideas by CapitalVia Global Research Limited

Market traded higher on Friday for the straight eighth session; Nifty closed at a record high

Market traded with positive sentiments on strong global cues and strong inflows from FIIs. Nifty closed at 12,271.80, adding 12.10 points. PSU banks, media and metal stocks traded with positive sentiments throughout the day and gained the most among indices. Nifty bank closed at 32,385, adding 143.50 points from the previous day’s closing.

As per weekly option data, handful of Put writing was done on lower strikes ranging from 12,200 to 12,250 which shows Nifty is witnessing good support in sub-12,200 zones. Call writing on higher strikes ranging from 12,300 to 12,500 shows market is likely to face resistance at higher levels. Traders should try to buy at any dip from higher levels as market has maximum put open interest (OI) at 12,200 which will act as major support level for the weekly expiry, but 12,300 will act as resistance as maximum OI for the calls stands here. However, if the Nifty is able to breach 12,300 will led to short covering move up to 12,400. Therefore, traders should buy at every dip keeping close eye on 12,200.

We can see a big momentum in following stocks:

Buy UPL Ltd.: (Above Rs 583)

Target: Rs 620

Stop loss: Rs 560

The stock is witnessing a bounce-back from major moving averages in daily chart and has closed above all major EMAs. Moreover, the stock is witnessing resistance breakout from the level of 583 and breaching this level might result in good upside momentum. Considering the technical evidence discussed here, we recommend buying the stock above Rs 583 for the target of Rs 620, keeping a stop loss at Rs 560 on a closing basis.

Buy Britannia Industries Ltd.: (Above Rs 3,157)

Target: Rs 3,280

Stop loss: Rs 3,060

After consolidating in a narrow range, the stock is consolidating and is ready to witness resistance breakout from level of Rs 3,150 and further from the levels of Rs 3,157 might lead to a bullish movement. We recommend buying the stock at Rs 3,157 for the target of Rs 3,280, keeping a stop loss at Rs 3,060 on a closing basis.

Nifty outlook and stock recommendation by HDFC Securities: Buy Escorts

Accumulate long positions with stop loss of 11,180 levels

Nifty took support at 200 day SMA on September 30 and recovered more than 100 points from the intraday low and finally closed with the losses of 115 points at 113,60 levels.

Nifty formed a major bottom of 10,670 and rallied towards 11,695 recently. 50 per cent Fibonacci retracements of the entire swing is placed at 11,182 which are likely to act as a support going forward. Previous top on charts also happens to be at 11,181 levels. 200 day SMA is placed at 11,255 levels from where Nifty took intraday support and bounced back. Therefore, we belive that there are multiple supports in the range of 11,180-11,250 odd levels.

Considering the Technical evidence, we believe that recent correction is a running correction in the overall uptrend. Therefore, our advice would be to accumulate longs in the Nifty with the stop loss of 11,180 levels. On the higher side resistance is seen around 11,600 levels

ESCORTS (610) : BUY

Target: Rs 670

Stop-loss: Rs 580

Return: 10%

Escorts stock price, after witnessing running correction for last few days, resumed its uptrend on Sept 30, where it closed above its 5 day SMA with higher volumes. Oscillators and momentum Indicators like RSI and MACD showing strength in the stock on the daily charts. In the derivatives, we have seen long build up in the Escorts Futures Therefore, we recommend buying Escorts at current market price of Rs 610 and add more on dips around Rs 595 for the upside target of Rs 580, keeping a stop loss of Rs 580 level.