Trading ideas: Stock recommendations for August 16, Monday

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall over 20 points at the opening bell. Earlier, the domestic equity barometers ended with solid gains on Friday. The barometer index, the S&P BSE Sensex, advanced 593.31 points or 1.08% to 55,437.29. The Nifty 50 index added 164.70 points or 1.01% to 16,529.10. Foreign portfolio investors (FPIs) bought shares worth Rs 819.77 crore, while domestic institutional investors (DIIs), were also net buyers to the tune of Rs 149.50 crore in the Indian equity market on 13 August, provisional data showed. Here are top money making ideas from technical analysts that may deliver good gains in the near term.

Recommendations by: Mudit Goyal, SMC Global Securities

Tech Mahindra | Buy | Stop loss: Rs 1,365 | Target price: Rs 1,410

Tata Steel | Buy | Stop loss: Rs 1,445 | Target price: Rs 1,490

Recommendations by: Mehul Kothari, Anand Rathi Shares and Stock Brokers

HDFC Bank | Buy | Stop loss: Rs 1,480 | Target price: Rs 1,575

Reliance Industries (RIL) | Buy | Stop loss: Rs 2,060 | Target price: Rs 2,250

Market outlook

Nagaraj Shetti, Technical Research Analyst, HDFC Securities on today’s market performance.

A long bull candle was formed on Friday on the daily chart, which indicates an upside breakout of the small narrow range of the last 5-6 sessions. This is a positive indication and one may expect the upside momentum to continue in the next session. This pattern signal a formation of a new sequence of higher tops and bottoms on the daily chart, where higher bottoms are part of a range movement and this is an uptrend continuation pattern. After a couple of sessions of upmove, the market could possibly shift into another round of range movement in the near term.

Nifty on the weekly chart formed a long bull candle, which is back to back formation in the last two sessions. After the upside breakout of larger range movement at 16,000-mark, the market is now signalling a sharp uptrend as per long term charts like weekly and monthly timeframe.

Conclusion: The near term trend of the Nifty continues to be positive and the present upside breakout of narrow range could signal more upside for the short term. Having reached our initial upside target of 16,500 levels on Friday, the Nifty is now expected to head towards the next upside target of around 16,800-17,000 levels in few weeks. Immediate support is placed at 16,380 levels.

(Disclaimer: Stocks recommendations by experts or brokerages are their own and not those of the website or its management. Money9.com advises market participants to check with certified experts before taking any buy, sell or hold decisions.)