Top trading ideas for today's trade: Buy Jubilant Foodworks, SAIL

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

NIFTY VIEW

Nifty has confirmed the lower top formation in the daily chart at 10770 levels and has also formed  a bearish engulfing pattern in both Nifty and Bank Nifty indices. Midcaps continued to drag with heavy selling pressure and sentiment has been worrisome.  However, the support for the day is seen at 10570 while resistance is seen at 10680. All eyes would be now on the monetary policy outcome which would be crucial.

BUY JUBILANT FOODWORKS  

CMP: Rs 2,561.15     

TARGET: Rs 2,780    

STOP LOSS: Rs 2,450

The stock has been in  a rising trend for a long time with series of higher bottom formation pattern in the daily chart and currently also a similar pattern has been formed taking support at the significant moving average of 50 DMA. The RSI indicator also has shown a trend reversal to signal a buy and has maintained a positive bias to indicate strength and potential for further rise from here on in the coming days. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 2780 keeping a stop loss of 2450.

BUY SAIL     

CMP: Rs 75.50     

TARGET: Rs 83    

STOP LOSS: Rs 71

The stock has maintained a strong base at around 68 levels and currently has moved above the significant 50 DMA which lies at around 75 levels to signify strength and is poised for an upward movement with potential to rise further in the coming days. The indicators like RSI is favourable with a trend reversal to signal a buy and with rising volume activity witnessed, we recommend a buy in this stock for an upside target of 83 keeping a stop loss of 71.

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