Nifty outlook and few trading ideas by Vaishali Parekh, research analyst - technical research at Prabhudas Lilladher:
NIFTY VIEW
The major indices- Nifty & Bank Nifty have got their weekly trend turned up after 7 & 8 weeks respectively. The bounce has brought momentum in all frontline stocks in the rotation. The support for the week is seen at 34370/10350 & resistance is seen at 35540/10720. Bank Nifty would have a range of 25050-26250. Weightage among the Nifty 50 is now equally distributed between the positive and negative. View still continues to be stock specific and cautious. It would still be prudent to book profit at every rise till we get confirmation in the trend.
BUY RELIANCE INDUSTRIES
CMP: Rs 1,074.90
TARGET: Rs 1,180
STOP LOSS: Rs 1000
The stock has maintained a good support at the significant 200 DMA moving average which lies near 1000 levels and has indicated a bounce to show improvement in the sentiment and bias has been maintained with favourable indicators like the RSI showing a trend reversal from the oversold zone and is steadily on the rise. With consistent decent volume activity seen, we recommend a buy in this stock for an upside target of 1180 keeping a stop loss of 1000.
BUY MARUTI
CMP: Rs 7,135.45
TARGET: Rs 8,100
STOP LOSS: Rs 6,500
The stock has witnessed a huge erosion in the past 2 months from the peak of around 10000 levels and currently has shown signs of bottoming out at around 6500 levels and lead a big positive bullish candle pattern in the daily chart has signified strength and huge potential in the stock for further upward rise in the coming days. The chart looks very attractive and with good volume participation witnessed consistently, we recommend a buy in this stock for an upside target of 8100 keeping a stop loss of 6500.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.