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 has its daily trend turned up after 5 days while weekly trend continues to be down. The monthly trend would very likely turn down below 10795. The bias hence remains sideways for this week having a range of 10320 & resistance of 10640. Tech sector continues to be in positive along with few Pharma stocks and consumer goods like Britannia.

BUY  ASHOK LEYLAND

CMP: Rs 134.40

TARGET: Rs 146

STOPLOSS: Rs 128

The stock has made a higher bottom formation pattern in the daily chart taking support at around 130 levels and is poised for an upward move with positive bias. The RSI has indicated a trend reversal to signal a buy and we anticipate a further rise from here on with strength and potential to give a breakout above the previous peak of 139.50 levels. With consistent volume participation, we recommend a buy in this stock for an upside target of 146 keeping a stop loss of 128. 

BUY  HIND ZINC

CMP: Rs 328

TARGET: Rs 355

STOPLOSS: Rs 310

The stock has made a decent recovery from the bottom made at around 280 levels and currently has given a closing breakout about the previous peak of 328 to signify strength and positive bias for further more rise in the coming days. The RSI is on the rise whereas also the MACD is showing positive signals for a buy. With rising volume activity in recent days, we recommend a buy in the stock for an upside target of 355 keeping a stop loss of 310.

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