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Nifty outlook and top trading ideas by Prabhudas Lilladher for today

Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

Vaishali Parekh 

Representational Image
Representational Image

NIFTY VIEW: After the spectacular rally in the indices, we are now in a position where technically, Nifty is in a highly overbought zone with RSI reading at 81 and some sort of a profit booking or consolidation would be anticipated. Now all eyes are on the Budget outcome which is to be released in the current week and so high volatility can be expected in the market. However, the support for the week is seen at 10,500 while resistance is seen at 11,450. BUY DHAMPUR SUGARS CMP : Rs 194.20 TARGET : Rs 225 STOP LOSS : Rs 178 The stock has witnessed a decent correction right from the peak of Rs 330 levels and now has found a bottom with good support base at Rs 178 levels and indicated a revival. The RSI also has indicated a trend reversal from the highly oversold zone and has signaled a buy with positive bias.

The chart looks attractive for more further upside gains in the coming days and with good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 225 keeping a stop loss of Rs 178. BUY SINTEX PLASTICS CMP : Rs 74.05 TARGET : Rs 85 STOP LOSS : Rs 70 The stock has corrected recently with a steep decline to bottom out at around Rs 72 levels and has formed more or less a double bottom formation in the daily chart to signify a bounce back from here on. The RSI has indicated a trend reversal from the oversold zone with a positive bias and has made the chart to look attractive for further upward rise. With decent volume activity seen, we recommend a buy in this stock for an upside target of Rs 85 keeping a stop loss of Rs 70. BUY NATH BIO-GENES CMP : Rs 558.50 TARGET : Rs 610 STOP LOSS : Rs 525 The stock has been on a good run in the past and recently after a consolidation phase for some time the stock has indicated a new round of momentum and is poised for still further movement upside. The RSI has once again moved into the positive bias zone with a trend reversal and so also the MACD is on the rise and with favourable factors to support our view of a buy in this stock, we anticipate a good rally from here on. With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 610 keeping a stop loss of Rs 525. Disclaimer: The analyst may have positions in any or all the stocks mentioned above.

First Published: Mon, January 29 2018. 08:23 IST
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