Nifty outlook and top trading ideas from Prabhudas Lilladher for today

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

NIFTY VIEW

Nifty has indicated a breakout above the 10,830 levels and improved the sentiment and bias also along with Bank Nifty which gave a decent bounce from the level of around 26,100 and now need to cross the barrier of 26,800-26,850 decisively to confirm a positive bias. However, the support for the day is seen at 10,800 levels while the resistance would be at 10,900. With the results of TCS and Infy to be released this week, it would be a result driven market.

BUY MEGHMANI ORGANICS

CMP: Rs 90

TARGET: Rs 103

STOP LOSS: Rs 83

The stock has corrected well from the peak of 114 to bottom out at around 78 levels to form a double bottom formation pattern in the daily chart and currently has produced a positive bullish candle to signify strength and potential to rise further in the coming days. The RSI has indicated a steep rise with a trend reversal to signify a positive bias and has made the stock to look attractive for an up move. With decent volume participation witnessed, we recommend a buy in this stock for an upside target of 103 keeping a stop loss of 83.

BUY SHRI KALAHASTHI PIPES

CMP: Rs 267.15

TARGET: Rs 300

STOP LOSS: Rs 246

The stock has witnessed a decent correction from the top level of 375 to indicate a bottom formation at around 246 levels and has now produced a big positive candle to indicate strength and we anticipate a good move in the coming days to scale up to 300-308 levels. The indicators have become favourable with the RSI shooting up from the oversold zone to signal a buy and also the MACD has indicated a trend reversal to maintain a positive bias. With good volume activity seen, we recommend a buy in this stock for an upside target of 300 keeping a stop loss of 246.

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