Top trading ideas from Prabhudas Lilladher: Buy Jindal Steel, ONGC

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

NIFTY VIEW

Nifty for the second day has ended on a negative note showing signs of exhaustion at the higher levels and also the weekly chart has indicated a lower top formation. The daily trend of Nifty has turned down after 4 days and chances of a downward slide till 10550 cannot be ruled out which is a major support as of now. The support for the day is seen at  10620  whereas the resistance would be at 10730. 

BUY JINDAL STEEL

CMP: Rs 240.30

TARGET: Rs 270

STOP LOSS:  Rs 228

The stock has moved past the significant 50 DMA to signify potential and strength for an up move and also it has been maintaining above the 200 DMA level which act as a major support level in the daily chart. We anticipate the stock to move further up till 265 -270 levels and with good volume activity seen, we recommend a buy in this the stock for an upside target of 270 keeping a stop loss of 228.

BUY ONGC

CMP: Rs 181.10

TARGET: Rs 194

STOP LOSS:  Rs 174

The stock has been moving in a range bound zone maintaining above the significant 200 DMA level and has indicated a positive bias with a positive candle to anticipate a bounce from here on in the coming days. The RSI has shown a trend reversal which supports our view for a positive move and with consistent decent volume participation witnessed, we recommend a buy in this stock for an upside target of 194 keeping a stop loss of 174. 

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