Top stock ideas from Prabhudas Lilladher for today: But ITC, SBI

Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

NIFTY VIEW

Nifty has so far respected the crucial support of 50DMA level at 10,540 and given a bounce yet in a no trend zone unless it gives a convincing move above 10,820 or a breakdown of 10,500 levels. The daily trend has turned up in Nifty after 2 days. The support for the day is seen at 10620 while resistance is seen at 10,740. SBI and other PSU Banks along with ITC look promising.

BUY ITC   

CMP: Rs 270.40     

TARGET: Rs 292    

STOP LOSS: Rs 260

The stock has witnessed a decent correction from the peak of 288 to bottom out at around 266 levels which is exactly at the significant 200DMA levels and has formed a higher bottom formation pattern in the daily chart. The chart looks very attractive with the risk- reward ratio very much favourable for a buy and with the RSI indicator also showing a trend reversal, the bias has turned positive with potential to rise further in the coming days. With decent volume participation witnessed, we recommend a buy in this stock for an upside target of 292 keeping a stop loss of 260.   

BUY SBI     

CMP: Rs 270.15      

TARGET: Rs 298      

STOP LOSS: Rs 255

The stock has been in consolidation for quite some time at around the 260-270 range gaining strength and has potential to rise further in the coming days. The daily chart looks attractive for an up move where a strong base at 230 levels is maintained forming a double bottom formation and currently has been maintaining above the significant 34 WMA and 50 DMA moving averages to indicate a positive bias. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 298 keeping a stop loss of 255.

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