Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:
Nifty has its daily trend turned down after 3 days along with Bank Nifty after 12 days. Nifty on daily chart confirms a lower top formation with a corrective move. The support for the day is seen at 10670 while resistance is seen at 10800. RIL, along with frontline banks like HDFC Twin, ICICI has started showing signs of exhaustion while FMCG still is in green. We suggest a very cautious approach with high crude & Rupee weakening.
BUY CAPITAL FIRST
CMP: Rs 559.85
TARGET: Rs 610
STOP LOSS: Rs 540
The stock has witnessed a decent correction from the levels of 900 to indicate a bottom formation at around 546 levels and looks attractive for a good bounce back. The Indicators like the RSI has hit the oversold zone and is poised for a trend reversal to anticipate a rise in the upward direction in the coming days. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 610 keeping a stop loss of 540.
CMP: Rs 79.30
TARGET: Rs 88
STOP LOSS: Rs 76
The stock has corrected well from the peak of 90 to bottom out around 77 levels and has indicated a bullish candle pattern in the daily chart to signify strength and potential to rise further in the coming days. The RSI also has shown a trend reversal to signal a buy and has maintained a positive bias. We anticipate the stock to scale upwards till 86-88 levels and the risk-reward ratio is favorable for a buy. With good volume participation seen, we recommend a buy in this stock for an upside target of 88 keeping a stop loss of 76.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.