 "Nifty outlook and few trading ideas by Prabhudas Lilladher for today")
NIFTY VIEW:
Nifty more or less continues to sustain above 10500 levels, however there is not much to talk about the clarity in trend unless we move past 10630 levels or a break of 10400 levels. The support for the day is seen at 10480 while resistance is seen at 10600. Bank Nifty continues to struggle with all ongoing domestic issues & hence this sector should take a while to stabilize.
BUY GAIL
CMP: Rs 475.90
TARGET: Rs 515
STOP LOSS: Rs 458
The stock has more or less made a double bottom formation in the daily chart and has given a good revival maintaining a positive bias. The indicators are all favourable with the MACD indicating a trend reversal and also the RSI has been in a positive trending mode to signify strength in the stock for still further more rise in the coming days. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 515 keeping a stop loss of 458.
BUY HIND UNILEVER
CMP: Rs 1358.15
TARGET: Rs 1440
STOP LOSS: Rs 1315
The stock has made a higher bottom formation pattern in the daily chart and has indicated a positive move from there on to signify strength and potential to rise further. The RSI has given a good decent revival from the oversold zone and is on the rise. The stock has moved past the 50 DMA and with decent volume activity and favourable indicators, we recommend a buy in this stock for an upside target of 1440 keeping a stop loss of 1315.
BUY BOMBAY BURMAH
CMP: Rs 1454.75
TARGET: Rs 1600
STOP LOSS: Rs 1370
The stock has witnessed a decent correction from the peak of 1823 to bottom out at 1185 levels which was also where the 200 DMA was lying and thus has maintained a good support. The stock has given significant recovery from there on and also the RSI has improved indicating a trend reversal from the oversold zone. The MACD is also signaling a buy with a positive bias and with good volume participation witnessed, we recommend a buy in this stock for an upside target of 1600 keeping a stop loss of 1370.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above
