Buy Bajaj Finance, Kwality and BPCL, says Prabhudas Lilladher

Few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

Nifty View:

There is a Doji formation in the daily chart of Nifty which can trigger a trend reversal but however, it has broken the support of 9,820 decisively and technically, since the sentiment has weakened, more space on the downside is visible before any possibility of revival happens. The RSI has had a steep fall to hit the oversold zone which is now at Rs 36 in the Nifty daily chart and we anticipate indices can witness some more pain on the downside. The support for the week is seen at 9,560 while resistance is seen at 9,820.

  

BUY BAJAJ FINANCE   

CMP: Rs 1,695.40     

TARGET: Rs 1,850      

STOP LOSS: Rs 1,580

The stock has made a higher bottom formation pattern in the daily chart and with the positive candle pattern formed, the stock looks potentially poised for an upside bounce to scale fresh new heights. The RSI indicator also has shown a reversal in its trend direction and with tremendous volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 1,850 keeping a stop loss of Rs 1,580.

  

BUY KWALITY    

CMP: Rs 139.85       

TARGET: Rs 155      

STOP LOSS: Rs 130

The stock has corrected from the level of Rs 152 to consolidate at around Rs 135 gathering strength and is poised to make a recovery movement in the upward direction. The RSI indicator is positive and with rising volume participation, we anticipate the stock to move further up till around Rs 155. We recommend a buy in this stock for an upside target of Rs 155 keeping a stop loss of Rs 130.

BUY BPCL  

CMP: Rs 484.30    

TARGET: Rs 530       

STOP LOSS: Rs 465

The stock has made the peak at Rs 529 and thereafter, has witnessed a small correction and is now bottoming out at around Rs 471. A bullish candle pattern is in the formation in the daily chart and we anticipate the stock to bounce back from these levels to rally further upto Rs 530. The RSI is in the revesing mode and with decent volume participation, we recommend a buy in this stock for an upside target of Rs 530 keeping a stop loss of Rs 465.

Disclaimer: The analyst may have positions in any or all the stocks mentioned above.