Nifty outlook and few trading ideas by Prabhudas Lilladher for today

Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher.

NIFTY VIEW: Nifty is in the process of making lower top on daily chart implying new round of correction to set in with near term resistance seen at 10600 levels. The support for the day is seen at 10440 while resistance is seen at 10550. Our view is corrective and cautious.

BUY TECH MAHINDRA

CMP: Rs 611.50

TARGET: Rs 660

STOP LOSS: Rs 580 

The stock has made a higher bottom formation pattern in the daily chart to reverse from the level of 586 and has indicated a positive bullish candle pattern to signify a positive bias and we anticipate a further rise from here on to scale up to 650 – 660 levels giving a breakout above the previous peak of 631 levels. 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 660 keeping a stop loss of 580.

BUY VINDHYA TELE

CMP: Rs 1,224

TARGET: Rs 1,380

STOP LOSS: Rs 1,120

The stock has witnessed a gradual correction from the peak of 1475 and has made a bottom formation at 1045 levels and now currently has indicated a good revival with positive candle patterns to strengthen the bias and we anticipate a further rise from here on. The indicators have become favourable and with the RSI giving a steep rise and also the MACD showing a trend reversal, we recommend a buy in this stock for an upside target of 1380 keeping  a stop loss of 1120.

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