Nifty outlook and top trading ideas by Prabhudas Lilladher

Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

NIFTY VIEW

Nifty and Bank Nifty are at the highly overbought zone with a negative divergence in the daily chart. The Nifty rally has almost touched 1000 points from the low made at 10557 levels and we maintain the positive bias however, with caution. The support for the day is seen at 11400 while resistance is seen at 11520.

BUY VEDANTA      

CMP: Rs 230.60        

TARGET: Rs 255        

STOP LOSS: Rs 217

The stock has been in consolidation for quite some time at around 220-225 levels and currently it has indicated a breakout above that range and also has moved past the significant 50 DMA moving average to signify strength and potential to rise further in the coming days and can scale up to 250-255 levels. The RSI has been on the rise and so also the MACD to maintain a positive bias. With good consistent volume participation witnessed, we recommend a buy in this stock for an upside target of 255 keeping a stop loss of 217.

BUY IGL    

CMP: Rs 303.30         

TARGET: Rs 330       

STOP LOSS: Rs 287

The stock has made a higher bottom formation pattern in the daily chart at around 286 levels which is also almost where the significant 200 DMA lies and has indicated a positive bullish candle to signify a fresh rally in the upward direction in the coming days. The RSI also has indicated a trend improvement and is on the verge of a reversal to signal a buy. With decent volume participation witnessed, we recommend a buy in this stock for an upside target of 330 keeping a stop loss of 287.

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