Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher.
Nifty has rallied one way with resistance at 10850, a Doji or a bar with selling tendency implies fatigue at higher levels and maybe some corrective move in the offing. The support for the day is seen at 10740 while resistance is seen at 10860. FMCG sector continues to show strength and would work well as a defensive sector.
BUY JSW ENERGY
CMP: Rs 70.40
TARGET: Rs 79
STOP LOSS: Rs 67
The stock has witnessed a decent erosion from the peak of 86 to bottom out at around 68 levels and currently has produced a positive bullish candle pattern in the daily chart to signify strength and potential to rise further in the coming days. The RSI has indicated a trend reversal which has hit the oversold zone and is poised for an up move with a positive bias. The chart looks attractive and with decent volume participation seen, we recommend a buy in this stock for an upside target of 79 keeping a stop loss of 67.
BUY MAN INDS
CMP: Rs 126
TARGET: Rs 142
STOP LOSS: Rs 118
The stock has given a gradual correction from the high of around 145 levels and has given the indication of bottoming out at around 121 levels to signify a revival and has potential to rise in the coming days. The RSI has shown a trend reversal also to signal a buy in the stock with a positive bias and also other indicators like the MACD has indicated a positive trigger to anticipate a positive upward move in the near future. We recommend a buy in this stock for an upside target of 142 keeping a stop loss of 118.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.