Nifty outlook and top stock picks by Prabhudas Lilladher: Buy RIL, Maruti

Nifty outlook and top trading ideas by Vaishali Parekh, research analyst - technical research at Prabhudas Lilladher.

NIFTY  VIEW

Market has witnessed huge erosion all across, with Nifty continuing to have its trend of all periodicities down, getting towards the oversold zone on weekly chart. The support for the week is seen at 36,450/10,780 while resistance is seen at 37,880/11,250 for Sensex and Nifty, respectively. Bank Nifty would have a range of 27,540-28,960. The IT sector, compared to other sectors, has been outperforming, and we have a positive view on TCS. Mid-cap stocks should now pick up from here.

BUY RELIANCE INDUSTRIES
CMP: Rs 1,173.67
TARGET: Rs 1,290
STOP LOSS: Rs 1,145

The stock has witnessed a decent correction recently and has bottomed out and taken support near 1,150 levels and indicated a bounce back with positive candle pattern in the daily chart. The RSI also has shown a trend reversal from the oversold zone to signal a buy and with the chart looking promising, we recommend a buy in this stock for an upside target of Rs 1,290 keeping a stop loss of Rs 1,145.

BUY MARUTI SUZUKI INDIA LTD
CMP: Rs 5,572.60
TARGET: Rs 6,100
STOP LOSS: Rs 5,400

The stock has fallen drastically in recent times and currently has indicated consolidation and a bounce back with positive candle formation in the daily chart and with the RSI also indicated a trend reversal from the oversold zone to signal a buy and has improved the bias. With the chart looking attractive, we recommend a buy in this stock for an upside target of Rs 6,100 keeping a stop loss of Rs 5,400.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.