Nifty outlook and few trading ideas by Vaishali Parekh, research analyst- technical research at Prabhudas Lilladher:
Nifty has taken the near term support of 10480 from where it has given a good bounce above 10600. The RSI on daily chart also shows sign of bounce to continue to progress towards 10650-10700 levels. Bank Nifty too has been well placed keeping 26000 as crucial support. The range for the day is seen at 35080/10570 as support while resistance is seen at 35630/10700. Bank Nifty would have a range of 26080-26650. FMCG continues to show strength & now a bounce is likely from most of the sectors.
BUY HIND UNILEVER
CMP: Rs 1,744
TARGET: Rs 1,900
STOP LOSS: Rs 1,670
The stock after the decent rally has been consolidating at around 1670 and 1700 levels and currently has produced a big positive candle pattern in the daily chart to signify strength and has potential to carry on the momentum still further in the coming days. With the RSI indicating a trend reversal to signal a buy and with good consistent volume participation witnessed, we recommend a buy in this stock for an upside target of 1900 keeping a stop loss of 1670.
BUY ALLAHABAD BANK
CMP: Rs 45.50
TARGET: Rs 54
STOP LOSS: Rs 40
The stock has made a bottom at around 37 levels and has given a good rally and currently has moved past the significant 200DMA moving average to signify strength and has maintained a positive bias and has much potential to anticipate a similar momentum in the coming days. The RSI is on the rise so also the MACD and with rising volume participation witnessed, we recommend a buy in this stock for an upside target of 54 keeping a stop loss of 40.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.