Buy BHEL for a target of Rs 78, SL of Rs 66: Prabhudas Lilladher

Nifty outlook and few trading ideas by Vaishali Parekh, research analyst- technical research at Prabhudas Lilladher.

NIFTY VIEW

Market yet again in a narrow range with hardly any definite move as far as Nifty is concerned but with a positive bias though with several attempts it has been unable to cross the 10930 hurdle. The support for the day is seen at 36080/10840 while resistance is seen at 36660/10960. Bank Nifty would have a range of 27230-27830. Kotak Bank looks promising from hereon.

BUY  HERO MOTOCO 
CMP: Rs 2,903.60       
TARGET: Rs 3,150     
STOP LOSS: Rs 2,840

The stock has witnessed a decent erosion from the peak of 3380 and has shown signs of bottoming out at around 2850 levels and is poised for an upward move in the coming days. The chart looks attractive and with the RSI also indicating a trend reversal from the oversold zone has maintained a positive bias and signaled a buy. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 3150 keeping a stop loss of 2840.

BUY BHEL   
CMP: Rs 70.15   
TARGET: Rs 78   
STOP LOSS: Rs 66

The stock has indicated a higher bottom formation with strong support at 67.50 and has produced a bullish candle pattern in the daily chart to signify strength and has the potential to rise in the coming days. The RSI has shown a strong trend reversal to signal a buy and the chart looks very promising. The indicators have become favourable and with good volume participation witnessed, we recommend a buy in this stock for an upside target of 78 keeping a stop loss of 66.

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