Top trading ideas by Prabhudas Lilladher: Buy TCS, Maruti Suzuki India

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

NIFTY VIEW

Nifty has, for now, held on to the support band of 11,430-11,460 levels, however, the daily and weekly trend continue to be negative, thus making the bias a little bit cautious. The support for the day is seen at 38,600/11,520 while resistance is seen at 39,180/11,650. Bank Nifty would have a range of 30,120-30,750. Infosys result has, for now, revived the IT Sector. Among banks, it is Kotak Mahindra Bank and Federal Bank that are in the green and Sun Pharma has started contributing to the Pharma index.

BUY TCS   

CMP : Rs 2,145.70

TARGET : Rs 2,250

STOP LOSS : Rs 2,080

The stock has indicated a reversal after the recent correction and has showed signs of  bottoming out near 2,080 levels with the bias improved with favourable indicators. The RSI also has indicated a trend reversal from the oversold zone to signal a buy and with good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 2,250 keeping a stop loss of Rs 2,080.

BUY MARUTI

CMP: Rs 6,079.70

TARGET: Rs 6,370

STOP LOSS: Rs 5,920

The stock has consolidated and has taken support near the 5,900 levels and has indicated a positive candle to improve the bias and can further rally in the coming days. The RSI has hit the highly oversold zone and has indicated a trend reversal to signal a buy and with consistent volume activity seen, we recommend a buy in this stock for an upside target of Rs 6,370 keeping a stop loss of Rs 5,920.

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