Nifty outlook and few trading ideas by Vaishali Parekh, research analyst - technical research at Prabhudas Lilladher:
The market continues to sustain well within the range, but for now, it is essential and crucial for Nifty to close decisively above the 10650 mark to have conviction and expect further up move in the coming days. Bank Nifty also showed some sort of resistance near 200 DMA at around 26050 levels. support of the day is seen is at 34970 / 10520 while resistance is seen at 35330 / 10640. Bank Nifty would have a range of 25700 – 26150.
BUY TATA SPONGE
CMP: Rs 816
TARGET: Rs 860
STOP LOSS: Rs 770
The stock has been consolidating at around 775 to 825 levels and currently has produced a positive bullish candle pattern in the daily chart to signify strength and potential for further upward movement with a positive bias. The RSI and also the MACD is on the rise and we anticipate the stock to perform in coming days. We recommend this stock to buy for an upside target of 860 keeping a stop loss of 770.
BUY NESTLE IND
CMP: Rs 10,448
TARGET: Rs 11,600
STOP LOSS: Rs 9,500
The stock has made a decent correction right from 11700 to 9080 levels and has made a trend reversal with a healthy green candle pattern. It has given a close above the cluster of moving averages which is significant. The RSI indicator also has confirmed the buy signal with a trend reversal and we anticipate this stock to rally up to 11600 levels. We recommend a buy in this stock keeping a stop loss of 9500.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.