Nifty outlook and few trading ideas by Vaishali Parekh, research analyst- technical research at Prabhudas Lilladher.
Nifty has held on to the support of 10570 levels while bank Nifty has surged by 250 points after taking support at 200DMA. The support for the day is seen at 35300/10580 while resistance is seen at 35900/10720. Bank Nifty would have a range of 26480-27150. The market would continue to be lackluster & wary ahead of Budget announcement to be held on Friday. Metal & Auto index seems to be showing some sign of bounce back.
CMP: Rs 767.35
TARGET: Rs 830
STOP LOSS: Rs 735
The stock has maintained a good base at 740 levels for quite some time and currently has indicated a positive bullish candle pattern moving above the significant 50DMA to signify strength and has potential to rise further in the coming days. The indicators are favourable with a positive bias and with good volume participation witnessed, we recommend a buy in this stock for an upside target of 830 keeping a stop loss of 735.
BUY TATA STEEL
CMP: Rs 467.45
TARGET: Rs 510
STOP LOSS: Rs 430
The stock has witnessed a great erosion in recent times and currently, a big positive bullish candle pattern indicates immense strength and has the potential to rise further in the coming days. The RSI has hit the highly oversold zone and has indicated a trend reversal to signal a buy with a positive bias. With good volume participation witnessed and the chart looking very attractive, we recommend a buy in this stock for an upside target of 510 keeping a stop loss of 430.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.