Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:
The market continues to slide gradually each day with frontline stocks beginning to witness profit booking, especially Banking sector & other sectors continuing to show no interest. Infra sector too in a new round of correction. The support for the day is seen at 10620 while resistance is seen at 10730. Keep a watch on Pharma sector making double bottom on the daily chart, however, do wait for confirmation.
BUY COAL INDIA
CMP: Rs 271.50
TARGET: Rs 295
STOP LOSS: Rs 260
The stock has witnessed a decent correction from the levels of 317 and has indicated a bottoming out signal with a positive bullish candle formation pattern in the daily chart making the chart look very attractive for a bounce back in the coming days. The RSI also has indicated a trend reversal from the oversold zone and has signaled a buy. With decent volume participation witnessed, we recommend a buy in this stock for an upside target of 295 keeping a stop loss of 260.
BUY TORRENT POWER
CMP: Rs 232.90
TARGET: Rs 250
STOP LOSS: Rs 222
The stock has more or less made a double bottom formation at around 222 levels indicating a good support and currently has shown a positive bullish candle formation in the daily chart to signify positive bias with strength and potential to rise further in the coming days. The indicator like RSI has indicated a prominent trend reversal to signal a buy and with a favorable risk-reward ratio, the chart has become attractive for a buy. With good consistent volume activity witnessed, we recommend a buy in this stock for an upside target of 250 keeping a stop loss of 222.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.