Buy National Aluminium Company, GHCL: Prabhudas Lilladher

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

NIFTY VIEW
 

Nifty now closing below 200dma implies further weakness with RSI on daily & weekly yet to get in to oversold zone, the near term target of 9800 now looks very reachable. The support for the day is seen at 10040 while resistance is seen at 10140. Bias still remains corrective with a wait & watch scenario till market shows some signs of stability & signs of reversal. Market is likely to witness choppiness with some bounce back.

BUY  NATIONAL ALUM  
CMP : Rs 67.50        
TARGET : Rs 77      
STOP LOSS : Rs 62
 

The stock has witnessed a decent gradual correction from the peak of 90 to bottom out around 60.50 levels and has shown some recovery with strength to anticipate a further rise from here on to scale upto 75 levels. The RSI has been on the rise with a positive bias and with the MACD also showing a recovery, the stock is poised for an up move and with good consistent volume participation witnessed, we recommend a buy in this stock for an upside target of 77 keeping a stop loss of 62.

BUY  GHCL    
CMP : Rs 275.05        
TARGET : Rs 320      
STOP LOSS : Rs 260
 

The stock has made a higher bottom formation pattern in the daily chart taking support at the significant moving average of  200 DMA which lies at 261 levels and has regained significantly to indicate a positive bias. The stock has also given a breakout above the 34 WMA and we anticipate a further rise from here on to scale upto 320 levels. With the chart looking attractive and with good volume activity seen in recent times, we recommend a buy in this stock for an upside target of 320 keeping a stop loss of 260.

Disclaimer: The analyst may have positions in any or all the stocks mentioned above.