Nifty outlook and few trading ideas by Vaishali Parekh, research analyst- technical research at Prabhudas Lilladher:
Market at this juncture seems to be consolidating waiting for series of events to unfold. Selective stocks bring in momentum in rotation with overall all indices but for Pharma are contributing to the market now as mentioned in the metal sector. The support for the day is seen at 35970/10800 while resistance is seen at 36500/10950. Bank Nifty would have a range of 26560-27120. The market would now witness some choppiness.
BUY JINDAL STEEL
CMP: Rs 161.95
TARGET: Rs 182
STOP LOSS: Rs 150
The stock has corrected from 187 levels to bottom out and form a base at around 150 levels and has also taken the trendline support connecting the previous major lows in the daily chart. The chart looks attractive with the RSI indicating a trend reversal from the oversold zone to signal a buy. We anticipate the stock to rise further with strength and with good volume participation witnessed, we recommend a buy in this stock for an upside target of 182 keeping a stop loss of 150.
BUY DCB BANK
CMP: Rs 161.45
TARGET: Rs 180
STOP LOSS: Rs 153
The stock has been consolidating at around 156 levels for quite some time and currently has produced a positive bullish candle pattern in the daily chart to signify strength and has potential to continue with the momentum still further upward in the coming days. The RSI has indicated a positive bias with a trend reversal and with good volume activity seen, we recommend a buy in this stock for an upside target of 180 keeping a stop loss of 153.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.