Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:
Nifty is slowly cruising to the 10400 levels where it faced a resistance in the previous session and as said earlier after the breakout indicated above the descending channel, the sentiment has little bit improved and a bounce back was anticipated but need to be cautious at 10450-10470 levels where a strong resistance is expected with the significant 50 DMA also lying in that zone. However, the support for the day is seen at 33600/10320 while the resistance would be at 33980/10440 levels. Bank Nifty would have a range of 24880-25320.
BUY BOMBAY DYEING
CMP : Rs 262
TARGET : Rs 295
STOP LOSS : Rs 245
The stock has been consolidating for quite some time at around 240 -248 levels and currently has indicated a breakout from this range and moved past the significant 50 DMA moving average to improve the sentiment and bias. The RSI has been on the rise whereas the MACD also has indicated a trend reversal to signal a buy. With consistent volume participation witnessed, we recommend a buy in this stock for an upside target of 295 keeping a stop loss of 245.
CMP : Rs 221.35
TARGET : Rs 244
STOP LOSS : Rs 205
The stock has witnessed a decent correction from the peak of 284 to bottom out at around 200 levels and now is in a revival mode. The indicators like the RSI has indicated a trend reversal from the oversold zone and has signaled a buy to maintain a positive bias. Also the MACD has shown a trend reversal and with rising volume participation witnessed, we recommend a buy in this stock for an upward target of keeping a stop loss of 205.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.