Top trading ideas by Prabhudas Lilladher: Buy Bata India, Biocon

Market outlook and top trading ideas by Vaishali Parekh, research analyst - technical research at Prabhudas Lilladher.

MARKET OUTLOOK

Nifty soared to an all time closing high of 12,088 with relative strength index (RSI) valued at above 66 implying further upmove. The support for the day is seen at 39,980/12,000 for Sensex and Nifty, respectively, while resistance is seen at 40,550/12,160. Bank Nifty would have a range of 31,350-31960. Market now awaits the RBI policy outcome on June 6. Banking stocks are back in new round of momentum along with auto stocks. It is still the frontline stocks enjoying the favour while mid-caps have meager participation.

BUY BATA  

CMP: Rs 1,362.80      

TARGET: Rs 1,480       

STOP LOSS: Rs 1,300

The stock has witnessed a double-bottom formation pattern on the daily chart at around Rs 1,300 levels forming a good base and has bounced to signify strength and it has the potential to rise further in the coming days. The RSI has given a steep rise with a trend reversal to signal a buy and has improved the bias. With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 1,480 keeping a stop loss of Rs 1,300.

BUY BIOCON      

CMP: Rs 553.40       

TARGET: Rs 600      

STOP LOSS: Rs 525

The stock has given a breakout above the resistance level of the consolidation range of Rs 550 and has implied strength with positive bias and with rising RSI the chart looks attractive and potential for further more upside movement in the coming days. With good volume activity witnessed, we recommend a buy in this stock for an upside target of Rs 600 keeping a stop loss of Rs 525. 

=======================================

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