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Top two trading ideas by Prabhudas Lilladher: Buy HUL, Tata Chemicals

The support for S&P BSE Sensex and Nifty50, for the week, is seen at 37,380/11,060 while the resistance is seen at 38,900/11,560 levels.

Vaishali Parekh  |  Mumbai 

Market outlook and top two trading ideas by Prabhudas Lilladher

NIFTY VIEW

Nifty is fluctuating near the 200-DMA of 11,270 levels and as said earlier, has the downside major support of 11,070 which is where the 50-DMA lies. On the the upper side, the level of around 11,600 has to be breached for further fresh upward movement. However, the support for the week is seen at 37,380/11,060 while the resistance is seen at 38,900/11,560 levels. Bank Nifty would have the weekly range of 27,300-28,830 levels. Volatility is anticipated with the result season going on.

Stock recommendation:

BUY HINDUSTAN UNILEVER


CMP: Rs 2,004.65

TARGET: Rs 2,150

STOP LOSS: Rs 1,940

The stock has formed a higher bottom formation pattern in the daily chart with the RSI also indicating a trend reversal to signal a buy. The chart looks attractive and implies strength and potential to rise further in the coming days. The indicators have become favorable with decent risk reward ratio and with good volume participation witnessed. We recommend a buy in this stock for an upside target of Rs 2,150, keeping the stop loss near Rs 1,940.

BUY

CMP: Rs 593.65

TARGET: Rs 640

STOP LOSS: Rs 570

The stock has taken support near the significant 50-DMA moving average and has indicated a turnaround with positive bias to imply strength and potential for further more upward movement in the coming days. The overall trend has been positive and is in a rising mode and with favourable indicators supporting our view of a positive move. We suggest to buy this stock for an upside target of Rs 640, keeping a stop loss of Rs 570.

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Disclaimer: Views expressed are the author's own. She may have positions in one or more stocks.

First Published: Mon, October 14 2019. 06:42 IST
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