Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher.
NIFTY VIEW: Attempts in Nifty for a downward slide was witnessed but a pullback recovery saw the index to close above the 10400 level to signify a consolidation phase at these levels at least for the time being. The level of 10450 would be crucial for Nifty as said earlier and a decisive breach on either side after the forthcoming results of the heavyweights like Infy, TCS and RIL, would bring in fresh one sided movement. However, the support for the day is seen at 10360 while the resistance would be at 10460 levels.
BUY UNITED SPIRITS
CMP: Rs 3459.90
TARGET: Rs 3700
STOP LOSS: Rs 3320
The stock has given a good revival move from the bottom made at around 2980 levels and currently has also given a breakout above the previous peak of 3380 to signify potential and strength to rise further from here on in the coming days.
The favourable indicators like RSI is on the rise and as well as the MACD is showing a positive bias for further up move. With good consistent volume activity seen, we recommend a buy in this stock for an upside target of 3700 keeping a stop loss of 3320.
CMP: Rs 296.80
TARGET: Rs 323
STOP LOSS: Rs 278
The stock has witnessed a decent correction from the peak of 345 to bottom out at around 275 levels to form a more or less double bottom formation in the daily chart and currently is in a bounce back mode. The RSI has indicated a trend reversal from the oversold zone and is on the rise to signify a positive bias and also the MACD has shown a positive trigger to support our view of a pullback. With increasing volume participation witnessed, we recommend a buy in this stock for an upside target of 323 keeping a stop loss of 278.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above