Nifty outlook and top trading ideas by Prabhudas Lilladher

Nifty outlook and few trading ideas by Vaishali Parekh, research analyst - technical research at Prabhudas Lilladher.

NIFTY VIEW
 

Nifty after breaking the previous support of 11,250 along with Bank Nifty too and weekly trend being down, we continue to have a corrective bias. The support for the day is seen at 36,860/11,160 while resistance is seen at 37,350/11,300. Bank Nifty would have a range of 26,000-26,500. Market is witnessing selling in almost all sectors; hence we need to wait for stability. RSI, too in the daily chart is at 41 levels, which cannot rule out scope for further correction.

BUY NILKAMAL  
 

CMP: Rs 1,828.90  
   

TARGET: Rs 1,970    
 

STOP LOSS: Rs 1,760

The stock has formed a higher bottom formation pattern at around Rs 1,755 levels which is also where the 200 DMA lies and has indicated a positive revival. The stock has also maintained above the significant 50DMA moving average and with the RSI also showing a trend reversal, a positive bias is maintained. With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 1,970 keeping a stop loss of Rs 1,760.

BUY COAL INDIA  
   

CMP: Rs 280.65   
 

TARGET: Rs 302
  

STOP LOSS: Rs 270

The stock has formed a higher bottom formation and has moved past the significant 50DMA moving average to signify strength and has potential to rise further in the coming days. The RSI also has indicated a trend reversal to signal a buy and with a positive bias maintained the stock is almost on the verge of a breakout above the 200DMA which lies at Rs 281 levels. With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 302 keeping a stop loss of Rs 270.

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