Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher.
NIFTY VIEW
Nifty has made a lower top formation in the daily chart and is poised for some more downside movement in the coming days. The near term support is maintained at around 10550 levels which when breached may witness further fresh sell off to retest the 200DMA level which is at 10280 levels. However, the support for the week is seen at 10440 while resistance is seen at 10780.
BUY PRAKASH INDS
CMP: Rs 203.85
TARGET: Rs 230
STOP LOSS: Rs 190
The stock has made more or less a higher bottom formation pattern in the daily chart taking support at 192 levels and signify strength and potential to rise further in the coming days. The stock has maintained above the significant 50 DMA level and also has moved above the 34WMA moving average to maintain a positive bias and with the RSI indicating a recovery path there is much scope for improvement. With minimum risk on the downside and with the chart looking attractive for a decent return, we recommend a buy in this stock for an upside target of 230 keeping a stop loss of 190.
BUY TATA SPONGE IRON
CMP: Rs 1117.80
TARGET: Rs 1235
STOP LOSS: Rs 1060
The stock has made a perfect higher bottom formation pattern in the daily chart maintaining above the 50DMA level and also moving above the significant 34 WMA moving average level. The stock is poised for an up move and with the RSI indicating a trend reversal to signal a buy, it has maintained a positive bias to make the chart look attractive. With decent volume participation witnessed, we recommend a buy in this stock for an upside target of 1235 keeping a stop loss of 1060.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.