Stocks for Tomorrow
& Nifty Outlook

Stocks

Stock ideas 19/7/2018

KPIT - Stock has shown good strength ahead of the weak market with good volumes and closed near to days high. It took the support of the trend line on daily chart. It is also trading near to 52 week high. We recommend buying from the current level for the target of 310 with the stop loss of 290.
 
SREINFRA - Stock is consolidating at the bottom of the daily chart with average volumes and RSI is looking bullish on the daily chart. We recommend buying from the current level for the target of 65-67 with the stop loss of 60.
 
DIVISLAB - Stock has shown good strength in past two trading session with average volumes. It took the support of 200 SMA on the daily chart and also formed doji on the previous trading session. We recommend buying from the current level for the target of 1110 with the stop loss of 1039.

Nifty Outlook

Index outlook 18 July 2018
 
Nifty reclaimed the 11K mark as the buying emerged at the lower levels; the momentum witnessed today seems to be positive for short term as it was a crucial support that was placed at 10900 levels and Nifty reclaiming the psychological mark is certainly encouraging for directional players.  The momentum has recently built up due to buying in broader sectors while there was mild profit booking in defensive sectors such as FMCG and IT. 
 
The pullback was largely a renewed buying based on a few technical factors that are favouring the bull. The contraction we were observing 
in short-term 
SMA
of 20 and 50 seems to be over as they are expanding. The average is getting higher and coupled with that we are seeing volatility to be in favour of bulls as Bollinger bands are expanding and letting the price action fill space. The lagging Indicator MACD has retested the Zero line and is positive since July Series indicating the bullish trend in the medium term.
 
We expect Next resistance to be placed at 11170 which is a previous all-time high.  We maintain the buy on dips strategy with the target of 11250 - 11300 while a recent swing low at 10900 looks apt to be Sl.