Nifty outlook and three trading ideas by Prabhudas Lilladher

Buy Aurobindo Pharma, Axis Bank, HCL Tech, says Vaishali Parekh of Prabhudas Liladher

Nifty View:

Nifty for now is showing resistance at 10130 levels; however RSI on daily chart shows no sign of fatigue. A decisive move past 10,150 gives us further upside target of 10,250-10,300 levels. The support for the day is seen at 10,030 while resistance is seen at 10,130.

BUY AUROBINDO PHARMA   

CMP: Rs 760    

TARGET: Rs 825     

STOP LOSS: Rs 735

The stock after a short phase of consolidation has indicated a positive move with a bullish candle pattern in the daily chart and we anticipate further more upward movement in the coming days. The RSI has also indicated a trend reversal recently signaling a buy and maintaining the positive bias. With decent volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 825 keeping a stop loss of Rs 735.

BUY HCL TECH  

CMP: Rs 871.30     

TARGET: Rs 930     

STOP LOSS: Rs 845

The stock after a gradual correction has consolidated near Rs 860 and has now indicated a positive candle and with the MACD also indicating a trend reversal, the stock looks attractive for further upward move. The RSI also has been on the rise and has indicated a positive bias. We recommend this stock for a buy for an upside target of Rs 930 keeping a stop loss of Rs 845.

BUY  AXIS BANK      

CMP: Rs 499.30        

TARGET: Rs 535    

STOP LOSS: Rs 482

The stock for some time has been moving between the range of Rs 480 and Rs 535 and now again has taken support at the 200-DMA which is at Rs 495 and has indicated a positive bias and potential to rise further till Rs 535. The RSI has shown a trend reversal signaling a buy and with the trend indicating a upward move, we recommend a buy in this stock for an upside target of Rs 535 keeping a stop loss of Rs 482.

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