Nifty outlook and 3 trading ideas for today's session: Prabhudas Lilladher

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

Nifty Outlook

Nifty is showing some resistance at the peak levels, post RBI announcement market witnessed some selling pressure. However near-term support lies at 10,020 while a decisive break can drag it to 9,960 level. The support for the day lies at 10,030 while resistance is seen at 10,125.

BUY AMBUJA CEMENTS     

CMP: Rs 266.60     

TARGET: Rs 290       

STOP LOSS: Rs 256

The stock after giving a small correction has made a higher bottom formation pattern in the daily chart with a positive candle and also has been accompanied by decent volume participation. The RSI indicator has given a positive trend reversal to signal a buy and we anticipate the stock to further rally to reach new targets on the upper side. We recommend a buy in this stock for an upside target of Rs 290 keeping a stop loss of Rs 256.

BUY IRB INFRA      

CMP: Rs 225.85      

TARGET: Rs 245        

STOP LOSS: Rs 213

After hitting the bottom at Rs 203 levels, the stock has recovered and has been in a consolidation phase for quite some time. Recently, it has produced a bullish candle to give a breakout above the 200-DMA which lies at around Rs 224, and now is showing potential and strength to move further in the upward direction. With favourable indicators supporting the positive bias and increasing volume participation, we recommend a buy in this stock for an upside target of Rs 245 keeping a stop loss of Rs 213.

BUY JK TYRES       

CMP: Rs 169.10      

TARGET: Rs 186       

STOP LOSS: Rs 158

The stock has consolidated at around Rs 160 after a brief correction and has taken support at around Rs 158 multiple times. It has given a positive candle pattern indicating positive bias with huge tremendous volume activity and with the RSI indicator suggesting a positive trend reversal to signal a buy, we recommend a buy in this stock for an upside target of Rs 186 keeping a stop loss of Rs 158.

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