Buy IndusInd Bank for a target of Rs 1650: Prabhudas Lilladher

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

NIFTY VIEW

Nifty remained well within the range and Bank Nifty too was in sync with Nifty. Among the Banking stocks Axis, ICICI, Yes Bank and IndusInd continue to look favorable along with mid-cap PSU like PNB, Union, etc. The support for the day is seen at 36020/10820 while the resistance is seen at 36600/10950 levels. BankNifty would have a range of 27200-27800. Mid-cap IT sector too looks favorable along with stocks like Indigo, Indiabulls Housing Finance.

BUY INDUSIND BANK     

CMP: Rs 1,526.70      

TARGET: Rs 1,650      

STOP LOSS: Rs 1,470

The stock has witnessed a steep correction recently last week and has bottomed out and maintained a good base near 1470 levels to form almost a double bottom formation pattern in the daily chart. The stock has given a decent bounce back and looks attractive for further more upside movement and can scale up to near 1605 levels with a positive bias and with favourable indicators supporting our view and good volume activity witnessed, we recommend a buy in this stock for an upside target of 1650 keeping a stop loss of 1470.

BUY INDIABULLS HOUSING FINANCE    

CMP: Rs 829.60      

TARGET: Rs 920      

STOP LOSS: Rs 785

The stock has maintained a strong base near 780 - 785 levels taking support at the significant 50 DMA moving average and has indicated a bounce to signify strength and has potential to rise further upward with the same momentum in the coming days. The indicators have become favourable with a positive bias and with good volume participation witnessed, we recommend a buy in this stock for an upside target of 920 keeping a stop loss of 785.

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