Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher.
Nifty has gradually reached the 10400 level and has indicated a range bound movement around that level forming a small bearish candle. The important resistance of 10450-10470 is nearing and we maintain a cautious view with the 50DMA moving average also hovering around that level. However, the support for the day is seen at 10350 while the resistance would be at 10450 levels.
CMP: Rs 180.20
TARGET: Rs 204
STOP LOSS: Rs 170
The stock has witnessed erosion from the peak of 212 to bottom out around 174 levels which is also where the significant 200 DMA lies and for quite some time it has been consolidating around that levels gaining strength. Currently, it has indicated a positive candle and we anticipate a further rise in the stock in the coming days and the indicators like the RSI has shown a trend reversal to signal a buy and has maintained a positive bias. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 205 keeping a stop loss of 170.
CMP: Rs 123.45
TARGET: Rs 138
STOP LOSS: Rs 115
The stock has witnessed a decent correction from the peak of 162 to bottom out and consolidate at around 116 levels where is has maintained a strong support. Currently, a bullish candle pattern has been formed in the daily chart to signify strength and potential to carry on the momentum further upward in the coming days. The RSI has recovered from the oversold zone indicating a trend reversal and so also the MACD has signalled a buy in the stock to maintain a positive bias. With decent volume participation witnessed, we recommend a buy in this stock for an upside target of 138 keeping a stop loss of 115.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.