Nifty outlook and top trading ideas from 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 down since 6 days & weekly down since 8 weeks, also RSI on daily chart in Nifty is getting in an oversold zone with Nifty nearing it’s crucial support of 9,800-9,700 levels, whereby it can be quite likely Nifty nearly bottoming out for a bounce back. Support for the week is seen at 9,750 while resistance is seen at 10,220. All sectors but for IT are once again in RED.

BUY  BHUSHAN STEEL  
CMP : Rs 41.60      
TARGET : Rs 49    
STOP LOSS : Rs 36  
 

The stock has witnessed a decent correction from the peak of 76 and has now bottomed out 37.50 levels to indicate a positive divergence with the RSI showing a trend reversal has signaled a buy. The chart looks attractive with a positive bias maintained and also with the MACD indicating a trend reversal has improved the sentiment. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 49 keeping a stop loss of 36.

BUY  GUJ STATE PETRONET  
CMP : Rs 181.90    
TARGET : Rs 204    
STOP LOSS : Rs 170
 

The stock has witnessed a steep correction recently from the levels of around 210 and has bottomed out at 172 levels to indicate a recovery with potential to rise further in the coming days. The chart pattern looks attractive and with the RSI indicating a trend reversal from the oversold zone, a buy signal has been triggered to maintain a positive bias. With good volume activity seen, we recommend a buy in this stock for an upside target of 204 keeping a stop loss of 170.

BUY  JUBILANT LIFE    
CMP : Rs 815.40      
TARGET : Rs 890    
STOP LOSS : Rs 780  
 

The stock has taken support at the levels of  around 780 on two occasions to indicate a strong base at these levels and we anticipate a recovery mode from here on to scale further upside targets in the coming days. The positive candle pattern indicates a positive bias and also with the RSI turning positive from the oversold zone, the stock is poised for an up move. With decent volume participation witnessed, we recommend a buy in this stock for an upside target of 890 keeping a stop loss of 780.

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