Nifty outlook and few trading ideas by Vaishali Parekh, research analyst - technical research at Prabhudas Lilladher:
NIFTY VIEW
Technically, Nifty and Bank Nifty have indicated a formation of a lower top in the daily chart and with the sentiment and bias looking weak, the indices have still further downside scope in the coming days. The previous lows would act as the major support zone for the indices as of now. However, the support for the day is seen at 36050/10900 while the resistance is seen at 36600/11050 levels. BankNifty would have a range of 24750-25320.
BUY BATA
CMP: Rs 983.55
TARGET: Rs 1,075
STOP LOSS: Rs 930
The stock has witnessed a decent correction from the peak of 1115 levels and has bottomed out at around 933 levels and currently has given a positive bullish candle pattern in the daily chart to signify strength and has potential to scale further upside in the coming days. The RSI has hit the oversold zone and has indicated a trend reversal to signal a buy and has maintained a positive bias with the stock moving above the significant 50DMA moving average. We recommend a buy in this stock for an upside target of 1075 keeping a stop loss of 930.
BUY APOLLO HOSPITALS
CMP: Rs 1,067.55
TARGET: Rs 1,180
STOP LOSS: Rs 1,010
The stock has made a higher bottom formation pattern in the daily chart and has indicated a revival with a positive bias moving above the 50DMA moving average to make the chart look attractive. The RSI has also indicated a trend reversal from the oversold zone and has signalled a buy. With the volume participation consistent and decent, we recommend a buy in this stock for an upside target of 1180 keeping a stop loss of 1010.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.