Nifty outlook and few trading ideas by Vaishali Parekh, research analyst - technical research at Prabhudas Lilladher:
NIFTY VIEW
Nifty has given a bounce with a gain of nearly 440 points from its low of 10004, for now, 10450 could act as resistance. The support for the day is seen at 34150/10300 while resistance is seen at 34720/10450. Bank Nifty would have a range of 25030-25600. All stocks have been on move in rotation for a bounce back. It has been a traders’ market till we see some clarity in the market.
BUY HDFC LTD
CMP: Rs 1762
TARGET: Rs 1940
STOP LOSS: Rs 1650
The stock has maintained a good support at around 1650 levels and currently has indicated a positive candle to signify strength and the stock looks poised for an up move in the coming days. The RSI has been on the rise so also the MACD to maintain a positive bias. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 1940 keeping a stop loss of 1650.
BUY HINDALCO
CMP: Rs 231.25
TARGET: Rs 255
STOP LOSS: Rs 216
The stock has been in consolidation for quite some time between 215 and 230 levels and currently a big positive candle to almost moving past the significant 200 DMA and 50 DMA has signified a positive bias and there is potential and strength in the stock for the further upward rise in the coming days. With good volume activity seen, we recommend a buy in this stock for an upside target of 255 keeping a stop loss of 216.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.