Buy HDFC Life for a target of Rs 450, SL of Rs 370: Prabhudas Lilladher

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

NIFTY VIEW

Nifty again took a breather near around 10550 levels and Bank Nifty too reached near the previous peak of 25900 levels and a breach above this level would be crucial which would decide the further upward movement. The support for the week is seen at 34680/10450 & resistance is seen at 34720/10600. Bank Nifty would have a range of 25450-26000. We anticipate a movement for Nifty between the range of 10000 and 10650 levels for the time being.

BUY TATA SPONGE      

CMP: Rs 812.20          

TARGET: Rs 900         

STOP LOSS: Rs 785

The stock has maintained its support level at around 782 levels forming a double bottom formation pattern in the daily chart and looks poised for an up move with the indicators like RSI looking favorable which is on the rise and also the MACD has indicated a positive bias. With decent volume participation and the chart looking attractive, we recommend a buy in this stock for an upside target of 900 keeping a stop loss of 785.

BUY HDFC LIFE        

CMP: Rs 400.35         

TARGET: Rs 450          

STOP LOSS: Rs 370

The stock has made a strong base at around 355 levels more or less forming a double bottom pattern formation in the daily chart and has indicated a bounce back to signify strength and has potential to rise further in the coming days. The RSI has indicated a trend reversal recently to signal a buy and with decent consistent volume participation witnessed, we recommend a buy in this stock for an upside target of 450 keeping a stop loss of 370.

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