Nifty outlook and top trading ideas by Prabhudas Lilladher for today

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

NIFTY VIEW

Nifty has given a relief rally by a decent bounce back from the low of 10138 but there is a major resistance at around 10,550-10,600 levels. Similarly, for BankNifty the levels of 26,100-26,200 can be a major hurdle and only a breach above that zone can bring about a conviction for further upside movement. The support for the week is seen at 34,000/10,250 while resistance is seen at 35,300/10,650 levels. Bank Nifty would have a range of 24,700-26,000.

BUY MAHINDRA & MAHINDRA     

CMP: Rs 768.50      

TARGET: Rs 840       

STOP LOSS: Rs 715

The stock has made a steep correction in the past one month from the peak of 976 levels to show signs of bottoming out at 715-720 levels and currently a positive bullish candle formation has been made to signify strength and has the potential to give further upside movement in the coming days. The RSI also has hit the highly oversold zone and has shown a trend reversal to signal a buy and with good consistent volume activity seen in the stock, we recommend a buy in this stock for an upside target of 840 keeping a stop loss of 715.

BUY VOLTAS     

CMP: Rs 510.40       

TARGET: Rs 560       

STOP LOSS: Rs 480

The stock has witnessed a decent correction from the levels of 636 to bottom out at around 475 levels and has given a bounce to signify further upside movement with strength. The chart looks very attractive and has potential to scale upto 555-560 levels in the coming days. The RSI has hit the oversold zone and has indicated a trend reversal to signal a buy. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 560 keeping a stop loss of 480.

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