Buy Lupin for a target of Rs 940, stop loss of Rs 810: Prabhudas Lilladher

Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

NIFTY VIEW

The benchmark indices as we had mentioned being in an overbought zone, the market is witnessing profit booking. The near-term support of Nifty lies at 11220-11200, a decisive break of which would bring in a further correction to an extent. Support for the day is seen at 11180 while resistance is seen at 311300. We suggest going light on trading positions as a word of caution. Pharma sector shows good up move hence we have a bullish bias on Sun Pharma, Auro Pharma, Lupin, etc.

BUY LUPIN     

CMP: Rs 864.85       

TARGET: Rs 940      

STOP LOSS: Rs 810

The stock has formed a higher bottom formation at around 790 levels and has given a decent bounce to move past the significant 200 DMA and 50 DMA moving averages and has indicated strength and potential to rise further in the coming days. The chart looks attractive and is poised for an upward move with the indicators like MACD showing a trend reversal to signal a buy and the RSI on the rise. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 940 keeping a stop loss of 810.

BUY HINDUSTAN ZINC    

CMP: Rs 280.80     

TARGET: Rs 310     

STOP LOSS: Rs 265

The stock has made a bottom formation pattern at around 262 levels and has recently given a good revival to signify potential to given upward movement in the coming days. The RSI has been on the rise and the stock almost is on the verge of giving a breakout above the significant 50 DMA moving average to improve the bias. With good decent volume activity witnessed, we recommend a buy in this stock for an upside target of 310 keeping a stop loss of 265.

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