Stock picks from Prabhudas Lilladher: Sun Pharma, Exide, Apollo Tyres

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

NIFTY VIEW :

Nifty after the spectacular rally has taken a pause around 11100 mark and now technically speaking, the indicator RSI has attained the highly overbought zone to signify a further consolidation or profit booking in the coming days. Being the expiry of the F&O Segment, we anticipate volatility in the market. The support for the day is seen at 11020 while resistance is seen at 11140.

BUY SUN PHARMA    CMP : 586.55      TARGET : 645      STOP LOSS : 560

The stock has been in consolidation phase for quite some time after the gradual rise from the bottom made at around 440 levels and now has indicated a positive candle formation in the daily chart to signify strength and potential to rise further in the coming days. The stock has maintained above the significant moving average of 34 WMA and also the RSI has indicate a trend reversal to signal a buy. With good decent volume activity witnessed, we recommend a buy in the stock for an upside target of 645 keeping a stop loss of 560.

BUY EXIDE   CMP : 232.65      TARGET : 254      STOP LOSS : 217

The stock has given a good recovery from the bottom made at around 200 levels and now after a short consolidation period has given a bullish candle pattern in the daily chart and we anticipate a decent rise from here on. The RSI has indicated a good revival and also the stock has maintained above the moving average of 34 WMA to indicate good support level. With the volume participation improving and on the rise, we recommend a buy in the stock for an upside target of 254 keeping a stop loss of 217.

BUY  APOLLO TYRES     CMP : 267.25      TARGET : 290      STOP LOSS : 254

The stock has given a decent correction from the peak of 288 and has bottomed out at around 257 levels to form a higher bottom formation pattern in the daily chart and currently is poised to regain for a fresh movement upwards to scale upto 280-285 levels with strength and potential in the coming days. The RSI also has indicated a trend reversal from near the oversold zone and is showing a positive bias for further rise. With good decent volume activity witnessed, we recommend a buy in this stock for an upside target of 290 keeping a stop loss of 254.

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Note: All stock prices in Rs

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