Few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:
NIFTY VIEW:
Nifty has made a double top formation in the daily chart at 10,490 and as said earlier, a decisive move past 10,550-10,580 would only decide the next fresh upward move. However, the support for the day is seen at 10,380 while the resistance would be at levels 10,500.
BUY BATA India
CMP: Rs 750.60
TARGET: Rs 820
STOP LOSS: Rs 715
The stock has witnessed a short correction from the peak of 832 to make a low at 704 and has bottomed out there to make a recovery move and showing a positive bias. The stock has moved above the significant 34 WMA and with the RSI on the rise and MACD also indicating a trend reversal recently, the factors are favorable and with decent volume participation witnessed, we recommend a buy in the stock for an upside target of 820 keeping a stop loss of 715.
BUY NCC
CMP: Rs 133.65
TARGET: Rs 148
STOP LOSS: Rs 122
The stock has made a higher bottom formation pattern in the daily chart at around Rs 117 and now has given a breakout above the previous peak of Rs 127, thus making the stock look attractive for still further up move. The stock has always maintained above the significant 34-WMA and with the RSI showing a steep rise indicates a strong trigger with a positive bias. With the volume activity improving, we recommend a buy in this stock for an upside target of Rs 148 keeping a stop loss of Rs 122.
BUY L&T FINANCE
CMP: Rs 180.60
TARGET: Rs 200
STOP LOSS: Rs 168
The stock after a decent correction from the peak of Rs 213 to the low of 160 has bottomed out there and also it’s an important support level because that’s where the 200-DMA lies. The stock has regained significantly from thereon and is on an upward trending mode with a positive bias. The RSI has reversed its trend after hitting the oversold area and has signaled a buy. With decent volume activity witnessed, we recommend a buy in this stock for an upside target of Rs 200 keeping a stop loss of Rs 168.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.