Top trading ideas for today: Buy Godrej Industries, HDFC Life

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

 

NIFTY VIEW

 

Nifty has indicated a lower top formation in the daily chart but still clarity of directional movement of indices is still not maintained. With F&O segment expiry just around the corner, we anticipate volatility in the indices. BankNifty has got a support at around 26000 levels while Nifty has got strong base at 10520-10540 levels. However, the support for the day is seen at 10550 while resistance is seen at 10670.

 

BUY GODREJ INDUSTRIES  

CMP: Rs 580.55    

TARGET: Rs 635   

STOP LOSS: Rs 550

 

The stock has indicated a higher bottom formation pattern in the daily chart with intraday low taking support at the previous low made at around 525 levels and currently has showed a pullback to move past the 34 WMA moving average levels to signify potential and strength to rise still further in the coming days. The RSI has recently indicated a trend reversal and has signaled a buy and with positive bias maintained and with good volume participation witnessed, we recommend a buy in this stock for an upside target of 635 keeping a stop loss of 550.

 

BUY HDFC LIFE   

CMP: Rs 502.85     

TARGET: Rs 560    

STOP LOSS: Rs 470

 

The stock has indicated a higher bottom formation in the daily chart and currently has moved past the significant 50 DMA moving average to signify strength and potential to rise further in the near future. The chart looks attractive with the RSI almost hitting the oversold zone and indicating a good recovery to maintain a positive bias and with decent volume participation witnessed, we recommend a buy in this stock for an upside target of 560 keeping a stop loss of 470.

 

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