Nifty outlook and few trading ideas by Vaishali Parekh, research analyst - technical research at Prabhudas Lilladher.
Nifty has retraced from the high of 10940 levels to a low of 10588, holding the crucial support of 10585 intact and closed at nearly 10700, whereby for now a higher bottom formation continues. The support for the week is seen at 35000/10480 while resistance is seen at 36230/10870. Bank Nifty would have a range of 25930-27150. Infra & IT sector have once again got in a new round of momentum along with Bank Nifty. Larsen, TCS, Infosys, etc look promising.
BUY SUN TV
CMP: Rs 594.45
TARGET: Rs 660
STOP LOSS: Rs 560
The stock has witnessed a decent erosion from the 1000 levels and has been consolidating for quite some time at around 595 – 600 levels and currently, a positive candle pattern is indicated from the bottom made at around 570 levels to show strength and has potential to rise further in the coming days. The indicators have turned favourable and with the RSI reversing its trend to signal a buy and with decent volume participation witnessed, we recommend a buy in this stock for an upside target of 660 keeping a stop loss of 560.
CMP: Rs 790.20
TARGET: Rs 875
STOP LOSS: Rs 750
The stock has made a higher bottom formation pattern in the daily chart taking support at around 765 levels and has indicated a bounce back. The chart looks attractive and has the potential to rise further with the same momentum in the coming days. The RSI has turned positive with a trend reversal to signal a buy and with good volume activity witnessed, we recommend a buy in this stock for an upside target of 875 keeping a stop loss of 750.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.