Support for Nifty seen at 11,280, resistance at 11,420: Prabhudas Lilladher

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

NIFTY VIEW

Nifty has rallied from 10,950 levels gaining almost 400 points and Bank Nifty also has gained almost 1,000 points from the low made at 26700 in the last two weeks and some exhaustion can be anticipated in the near future. Stocks are moving in rotation and reaching new zone levels. However, the support for the day is seen at 37,360/11,280 while resistance is seen at 37,820/11,420. Bank Nifty would have a range of 27,520-28,000. 

BUY BAJAJ AUTO     

CMP: Rs 2,700      

TARGET: Rs 2,950     

STOP LOSS: Rs 2,600

The stock has witnessed a great erosion from the peak of 3194 to bottom out at around 2605 levels and is currently in a revival mode with good potential to rise further strongly in the coming days. The chart looks very attractive for an upward move and with the RSI indicating a trend reversal from the oversold zone it has signaled a buy and has improved the bias. With tremendous volume participation witnessed, we recommend a buy in this stock for an upside target of 2950 keeping a stop loss of 2600.

BUY  KOTAK BANK      

CMP: Rs 1,306.85       

TARGET: Rs 1,410     

STOP LOSS: Rs 1,275

The stock has given a decent correction in recent times from the peak of 1415 to bottom out currently at around 1285 levels. The stock looks attractive with the ongoing consolidation phase and we anticipate a good bounce from here on in the coming days and expect to give good returns. The RSI also has hit the oversold zone and its high time it is bound to give a revival and improve the bias strongly. With minimum risk reward ratio and with decent volume activity witnessed, we recommend a buy in this stock for an upside target of 1410 keeping a stop loss of 1275.

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