Trading ideas by Prabhudas Lilladher: Buy Torrent Pharma, Greaves Cotton

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

NIFTY VIEW

Amid all the choppiness and individual stocks witnessing whiplashes, Nifty is managing to sustain well in its range. The support for the day is seen at 38,770/11,680 for Sensex and Nifty, respectively, while resistance is seen at 39,320/11,820. Bank Nifty would have a range of 29,470-30,060. IT sector continues to outperform, while auto sector has been taking the beating. Metal and Energy look positive, mid-cap sector has corrected to take support of 200-day moving average (DMA) for now. Besides tech stocks, Tata Steel, JSPL and JSW steel look promising.

BUY TORRENT PHARMA   

CMP: Rs 1,791.90 

TARGET: Rs 1,950     

STOP LOSS: Rs 1,700

The stock has witnessed a short correction and has taken support near the significant 200-DMA and has indicated a positive bullish candle pattern on the daily chart to signify strength and has the potential to rise further in the coming days. The RSI has indicated a trend reversal to signal a buy and with good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 1,950, keeping a stop loss of Rs 1,700.

BUY GREAVES COTTON     

CMP: Rs 147.50        

TARGET: Rs 160     

STOP LOSS: Rs 139

The stock has, more or less, witnessed a higher bottom formation pattern taking support near Rs 139 levels and currently has produced a positive bullish candle signifying a positive bias and has opened up upside fresh targets which can be achievable in the coming days. The RSI has indicated a steep rise to show a trend reversal and signal a buy. With good volume activity witnessed, we recommend a buy in this stock for an upside target of Rs 160, keeping a stop loss of Rs 139.

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