Top trading idea by Prabhudas Lilladher: Buy Torrent Power, Cummins India

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

NIFTY VIEW

Market though is overbought, yet Nifty is holding the support of 11,220 showing signs of a new round of momentum. Bank Nifty, too, has taken the support of 27,350 levels & back in momentum with Axis, ICICI, Kotak Bank, Yes Bank, etc, looks promising from here on. The support for the week is seen that 36940/11160 while resistance is seen at 37,980/11,500. Bank Nifty would have a range of 27,050-28,140. Focus on banking stocks.

BUY CUMMINS INDIA    

CMP: Rs 703.30       

TARGET: Rs 770     

STOP LOSS: Rs 660

The stock has witnessed a huge correction in the past 7 months from the peak of 984 to bottom out recently at 615 levels and has given a decent bounce back currently to move above the significant  50 DMA and given a breakout above the previous resistance of 685 levels thus signifying strength and potential to rise further in the coming days. With increasing volume participation witnessed the bias has improved a lot and hence we recommend a buy in this stock for an upside target of 770 keeping a stop loss of 660.

BUY TORRENT POWER       

CMP: Rs 233.60      

TARGET: Rs 263     

STOP LOSS: Rs 217

The stock has indicated a higher bottom formation pattern in the daily chart and currently has produced a positive candle pattern moving above the significant 34 WMA to signify a positive bias and strength to rise further in the coming days. The RSI has shown improvement and also the MACD is on the rise and with decent volume participation witnessed, we recommend a buy in this stock for an upside target of 263 keeping a stop loss of 217.

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