Top trading ideas by Prabhudas Lilladher: Buy ICICI Bank, United Breweries

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

MARKET VIEW

Nifty has given a breakout above the barrier level of 11,760 maintaining a positive bias and potentially looks favourable for more upsides in the coming days. Bank Nifty, too, with a healthy outlook is on the verge of a fresh breakout above 30,650 levels. The support for the day is seen at 39,000/11,720 for Sensex and Nifty, respectively, while resistance is seen at 39,560/11,850. Bank Nifty would have a range of 30,240-30,840. Banks, Infra, Auto and FMCG sector continue to show strength.

BUY  ICICI BANK   

CMP: Rs 407      

TARGET: Rs 440     

STOP LOSS: Rs 385

The stock has picked up well in recent times and is on the verge of a breakout above Rs 410 levels to improve the bias and has signified strength and potential to rise further in the coming days. The relative strength index (RSI) also has indicated a trend reversal with a steep rise and has made the chart look attractive for more upsides. With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 440 keeping a stop loss of Rs 385. 

BUY  UNITED BREWERIES  

CMP: Rs 1,442.50      

TARGET: Rs 1,550      

STOP LOSS: Rs 1,390

The stock has improved the bias with a positive candle pattern to give a breakout above the resistance level of around Rs 1,430 levels of the consolidation phase and has potential to rise still further in the coming days. The indicators look favourable and with the chart looking attractive with decent volume activity, we recommend a buy in this stock for an upside target of Rs 1,550 keeping a stop loss of Rs 1,390.

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