Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:
NIFTY VIEW
The trend of all periodicities has turned down in Nifty with the weekly trend turning down after 6 weeks bringing in a lot of erosion in the stocks. The lower top formation continues to confirm a weak trend having further room for correction. The support for the week is seen at 10400 while resistance is seen at 10760. FMCG sector continues to show strength while other sectors have got in a corrective move. The bias still continues to be corrective.
BUY ITC
CMP: Rs 282.30
TARGET: Rs 305
STOP LOSS: Rs 268
The stock has been consolidating at around 280 - 285 and has maintained above the 34WMA moving average to indicate a positive bias and currently has shown a positive candle pattern in the daily chart to signify strength and potential to rise further in the coming days. With good consistent volume participation witnessed, we recommend a buy in this stock for an upside target of 305 keeping a stop loss of 268.
BUY JUBILANT FOOD
CMP: Rs 2497.85
TARGET: Rs 2700
STOP LOSS: Rs 2390
The stock has made a higher bottom formation pattern in the daily chart almost taking support at the 50 DMA moving average and has made the chart look attractive. The RSI indicator has hit the oversold zone and has indicated a trend reversal to signal a buy. The overall long-term trend has been maintained with a positive bias and with good decent volume participation seen, we recommend a buy in this stock for an upside target of 2700 keeping a stop loss of 2390.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.