Nifty outlook and few trading ideas by Vaishali Parekh, research analyst - technical research at Prabhudas Lilladher:
The market continues to bounce, now with Nifty likely to approach the 200dma level of 10730. More so along with Bank Nifty the other sectors too have started participating for the index to move on. The support for the day is seen at 35240/10620 while resistance is seen at 35800/10750. Bank Nifty would have a range of 26170-26740. Auto stocks and Auto ancillary look promising from here on. Metal stocks too look favorable for a bounce
CMP: Rs 1,004.25
TARGET: Rs 1,100
STOP LOSS: Rs 950
The stock has taken support at the significant 50DMA moving average making a higher bottom formation pattern in the daily chart and has produced a positive candle to signify strength and has potential to rise further with the same momentum in the coming days. The RSI also has indicated a trend reversal to signal and with improving volume participation witnessed, we recommend a buy in this stock for an upside target of 1100 keeping a stop loss of 950.
BUY APOLLO TYRES
CMP: Rs 230.10
TARGET: Rs 260
STOP LOSS: Rs 215
The stock has been moving in a range bound zone and currently has moved past the significant moving averages of 34WMA and 50DMA to improve the bias and we anticipate a further rally from here on. The RSI has indicated a positive trend reversal to signal a buy and with good volume activity witnessed, we recommend a buy in this stock for an upside target of 260 keeping a stop loss of 215.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.