Nifty outlook and key trading ideas by Prabhudas Lilladher

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

NIFTY VIEW:

The monthly trend in indices has turned up. Technically, Nifty has a strong resistance at 10,500, so it would be yet again a wait and watch scenario till Nifty moves past 10,500 decisively for higher targets. The support for the day is seen at 10,280 while resistance is seen at 10,380.

BUY AMARA RAJA BATTERIES    

CMP: Rs 699.60      

TARGET: Rs 770     

STOP LOSS: Rs 670

The stock has witnessed a great correction right from the peak of Rs 940 to bottom out at around Rs 683, and now has indicated a bounce back with a positive candle pattern in the daily chart and is showing potential and strength to rise up further in the coming days. With the RSI also indicating a positive bias with a trend reversal, this stock looks attractive for further rally and with good volume participation witnessed, we recommend this stock for an upside target of Rs 770 keeping a stop loss of Rs 670.

BUY BPCL 

CMP: Rs 541.60      

TARGET: Rs 590      

STOP LOSS: Rs 520

The stock has recovered significantly after making the bottom at around Rs 450 and is now on the verge of giving a breakout above the previous peak of Rs 546 and we anticipate it to rise further till Rs 585-590 levels. The RSI has been on the rise for quite some time and the stock has maintained the positive bias with more scope of upside movement. With active volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 590 keeping a stop loss of Rs 520.

  

BUY IGARASHI MOTORS   

CMP: Rs 910.45      

TARGET: Rs 995      

STOP LOSS: Rs 870

The stock has been in consolidation for quite some time and it has now moved above the significant 200-DMA indicating a positive candle pattern in the daily chart. The stock look promising and has potential to rise further with favourable indicators supporting our view of a positive bias. With volume activity improving, we recommend this stock for an upside target of Rs 995 keeping a stop loss of Rs 870.

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