Buy BHEL for a target of Rs 90, stop loss of Rs 74: Prabhudas Lilladher

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

NIFTY VIEW

Nifty as mentioned has been consolidating between the range of 11,500-11,620, the trend remains intact as long as long as 11,400 levels are held on decisively. Infra sector after a long time has come out of its consolidation to form an uptrend, along with Pharma which continues to add flavor, Pharma we are looking at a target of 10,500. The support for the week is seen at 37,700/11,380 while resistance is seen at 38,700/11,700. Bank Nifty would have a range of 27,270-28,300. 

BUY BHEL   

CMP: Rs 80.20    

TARGET: Rs 90    

STOP LOSS: Rs 74   

The stock has almost formed a higher bottom formation like pattern in the daily chart taking support at the significant 50 DMA moving average which lies at around 72 levels and has maintained a positive bias. The RSI also has been on the rise and with the chart looking attractive, we anticipate a decent rise from here on to scale till 88-90 levels in the coming days. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 90 keeping a stop loss of 74.

BUY CADILA HEALTHCARE   

CMP: Rs 398.45     

TARGET: Rs 440    

STOP LOSS: Rs 380    

The stock has made a double bottom pattern in the daily chart at around 332 levels and has given a decent bounce and currently has now moved past the previous peak of 385 levels and also the significant 200 DMA moving average to give a breakout and signify a positive bias and strength. We anticipate the stock to rise in the coming days and with the RSI on the rise and with good consistent volume participation witnessed, we recommend a buy in this stock for an upside target of 440 keeping a stop loss of 380.

BUY PIRAMAL ENTERPRISES   

CMP: Rs 2,880.55      

TARGET: Rs 3,150    

STOP LOSS: Rs 2,750

The stock has formed a higher bottom formation pattern in the daily chart and has bounced back to signify strength and has got the potential to rise further in the coming days. The RSI has indicated a trend reversal recently and has maintained a positive bias. The chart looks attractive and with decent volume activity seen, we recommend a buy in this stock for an upside target of 3150 keeping a stop loss of 2750.

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