Buy Canara Bank for a target of Rs 290, SL of Rs 245: Prabhudas Lilladher

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

NIFTY VIEW

The market continues to surge high as far as indices are concerned, with selective large-cap stocks supporting the market, i.e. the banking stocks now especially the PSU Banks, along with few FMCG and RIL. Metals, Pharma and IT stocks are non-participative bringing in volatility. The support for the week is seen 34800/10470 while resistance is seen at 36080/10880. Bank Nifty would have a range of 25580-26870.

BUY CANARA BANK       

CMP: Rs 263.70        

TARGET: Rs 290       

STOP LOSS: Rs 245      

The stock has formed a higher bottom formation pattern in the daily chart taking support at around 234 levels and currently has almost moved past the significant 200DMA moving average indicating a positive bias and has strength for further upsides in the coming days. The indicators are favourable maintaining a positive bias and with consistent decent volume participation witnessed, we recommend a buy in this stock for an upside target of 290 keeping a stop loss of 245.

BUY COLGATE PAL      

CMP: Rs 1,147.60         

TARGET: Rs 1,250        

STOP LOSS: Rs 1,095

The stock has been consolidating for quite some time between the range of around 1100 and 1125 and currently has given a breakout above that range and also moved past the significant 200DMA moving average to signify strength and has potential to scale further upwards in the coming days.  The RSI has indicated a steep trend reversal to maintain a positive bias and with decent volume participation witnessed, we recommend a buy in this stock for an upside target of 1250 keeping a stop loss of 1095.

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