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Top trading ideas by Prabhudas Lilladher: Buy Hero Honda and JSW Steel

Nifty outlook and top trading ideas by Vaishali Parekh, research analyst - technical research at Prabhudas Lilladher.

Vaishali Parekh  |  Mumbai 

Markets, Buy, Sell, Stocks, Shares

VIEW

has witnessed a decent bounce back from the support zone of 10,600 and, as of now, is facing some resistance near 10,800 level which when breached would further proceed towards 10,860 levels. However, the support for the week is seen at 35,180/10,570 for and Nifty, respectively, while resistance is seen at 36,500/11,000. Bank would have a range of 26,170-27,530. We would maintain a positive view in Auto and IT stocks which have recovered strongly with a positive bias. Watch for Maruti, Hero Moto, M&M, TCS and Infosys.

BUY HERO HONDA

CMP: Rs 2,679.85


TARGET : Rs 2,950

STOP
LOSS : Rs 2,560

The stock has witnessed a decent erosion recently from the peak of Rs 2,960 and has bottomed out at around Rs 2,580 levels to make a more or less double bottom formation pattern in the daily chart. Currently, the positive bullish candle formation has made the chart look very attractive and has improved the bias and we anticipate a good run from here on. The RSI showing a trend reversal from the oversold zone has signaled a buy and with good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 2,950 keeping a stop loss of Rs 2,560.


BUY

CMP : Rs 285.85

TARGET : Rs 330

STOP
LOSS : Rs 260

The stock has eroded much of its gain in the past 4 to 5 months from the peak of Rs 427 and recently has shown signs of bottoming out at around Rs 255 levels and currently with a bounce back movement has made the chart look very promising for further upward movement. The RSI has slowly started rising to maintain a positive bias and with good consistent volume activity seen, we recommend a buy in this stock for an upside target of Rs 330, keeping a stop loss of Rs 260.

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

First Published: Mon, February 25 2019. 06:27 IST
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