Market check: Buy GNA Axles, Supreme Petro and Exide Industries

Few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

Nifty View:

Nifty for quite some time has been hovering around the narrow range of 9970 and 9870 and finding it difficult to make a breakthrough on either side. Technically, the weekly trend continues to be down for the 5th week and so the level of 10100 continues to be the upper cap for Nifty as of now.  However, the support for the week is seen at 9780 while resistance is seen at 10070.

  

BUY EXIDE INDUSTRIES   

CMP: Rs 219.65     

TARGET: Rs 236    

STOP LOSS: Rs 208

The stock has corrected well and has made a bottom at around Rs 195, and has recovered strongly from thereon. Now it has produced a positive bullish candle pattern in the daily chart giving a breakout above the 200-DMA and thus indicating positive bias and potential to rally further. The RSI has been on the rise and with decent volume participation witnessed, we recommend a positional buy in this stock for an upside target of 236 keeping a stop loss of Rs 208.

BUY SUPREME PETRO  

CMP: Rs 388.30     

TARGET: Rs 425     

STOP LOSS: Rs 360

The stock has witnessed a decent correction from the levels of 420 to make a bottom at around 322 level and has picked up significantly from thereon. We anticipate still further rally and upward movement in coming days to scale the previous peak of 420 and give a breakout. The RSI has been strong and on the rise with potential to appreciate further. With good volume participation and activity going on, we recommend a buy in this stock for an upside target of 425 keeping a stop loss of 360.

BUY GNA AXLES

CMP: Rs 294.55      

TARGET: Rs 320      

STOP LOSS: Rs 280

The stock has made a higher bottom formation like pattern in the daily chart at around Rs 254 levels and has significantly pulled back to reach the level of Rs 298 and is showing potential and strength to give a breakout above the Rs 299 level which was the previous peak. The RSI has been on the rise and indicating further up move in coming days. With good activity witnessed in the stock, we recommend a positional buy in this for an upside target of Rs 320 keeping a stop loss of Rs 280.

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