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

Market continued to be volatile with Nifty holding on to the near term support of 10850 levels & getting back in to momentum to close above 10900. The support for the day is seen at 36160/10850 while resistance is seen at 36720/10980. Bank Nifty would have a range of 27200-27770. IT Index continues to show strength along with mid-cap IT Stocks, also Pharma sector, now from here on Metal stocks look attractive to accumulate.

BUY HERO MOTOCO   

CMP: Rs 2,824.90       

TARGET: Rs 3,050        

STOP LOSS: Rs 2,730

The stock has witnessed a decent erosion from the peak of 3380 and currently made a low of 2742 which is near to the previous bottom level of 2650 and we anticipate a bounce back from here on in the coming days. The chart looks very attractive and also the RSI has hit the oversold zone and is on the verge of indicating a trend reversal. With rising volume participation in the stock, we recommend a buy in this stock for an upside target of 3050 keeping a stop loss of 2730.

BUY JUBILANT LIFE    

CMP: Rs 734.50        

TARGET: Rs 805        

STOP LOSS: Rs 695

The stock has indicated a huge bullish candle pattern in the daily chart to signify strength and has potential to rise further and carry on with the same momentum in the coming days. The RSI has indicated a steep rise with a trend reversal to signal a buy. With favourable indicators supporting and with decent volume activity seen, we recommend a buy in this stock for an upside target of 805 keeping a stop loss of 695

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