Nifty outlook and top trading ideas from Prabhudas Lilladher for today

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

NIFTY VIEW

Nifty broke the barrier of 10,785 levels and moved past the 10,800 level with positive sentiments but the further direction of the market would be mostly decided, post the Karnataka election results with much volatility anticipated on Monday with the outcome of the exit polls. Nifty and Bank Nifty have both retraced almost 65% from the lows made in the month of March and chances of an exhaustion at higher levels cannot be ruled out. However, the support for the week is seen at 10,560 while resistance is seen at 10,970.

BUY  BPCL   
CMP : Rs 399.30     
TARGET : Rs 450     
STOP LOSS : Rs 375

The stock has witnessed a decent erosion from the peak of around 545 and has bottomed out at around 375 levels consolidating for some time to see a positive bias developing currently and producing a bullish candle pattern in the daily chart. The chart looks attractive for a decent rise from here on with the RSI indicating a trend reversal recently and also the MACD showing a positive trigger for an up move. With rising volume participation witnessed, we recommend a buy in this stock for an upside target of 450 keeping the stop loss of 375.

BUY  BAJFINANCE   
CMP : Rs 1,861.50     
TARGET : Rs 1,975     
STOP LOSS: Rs 1,800

The stock has gradually corrected from its peak of 1960 to give a bottoming out indication at around 1820 levels and currently, a positive bullish candle pattern formed indicates an uptrend with a positive bias with also the RSI showing a trend reversal to signal a buy. The stock has maintained above the significant 50DMA and we anticipate a rise from here on to scale till 1970 levels. With good volume activity witnessed, we recommend a buy in this stock for an upside target of 1975 keeping a stop loss of 1800.

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