Support for Nifty seen at 10,650, resistance at 10,760: Prabhudas Lilladher

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

NIFTY VIEW

Market is gradually picking up momentum however Nifty still needs to cross the hurdle of 10,700-10,730 on closing basis. Pharma sector seems to be getting ready for new round of momentum along with Auto now showing hopes of revival. Maruti, Bajaj Auto, etc. look positive from here on. The support for the day is seen at 10,650 while resistance is seen at 10,760. Mid cap sector too, is ready for a bounce.

BUY ASHOK LEYLAND     

CMP: Rs 129.50   

TARGET: Rs 144    

STOP LOSS: Rs 123

The stock has witnessed a decent correction from the peak of 165 and currently has now indicated signs of bottoming out at around 123 levels and has produced a positive candle pattern in the daily chart to anticipate a further rise in the coming days. The RSI also has showed a trend reversal from the highly oversold zone to signal a buy and has improved the bias sentiment. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 144 keeping a stop loss of 123.

BUY ZEE ENTERTAINMENT ENTERPRISES    

CMP: Rs 544.80      

TARGET: Rs 580     

STOP LOSS: Rs 528

The stock has corrected from the levels of 608 to bottom out at around 532 levels and we anticipate a bounce from here on to scale around 580-590 levels. The indicators like RSI has indicated a trend reversal to signal a buy and the chart looks promising for further upward move in the coming days. The volume participation has been decent and with favorable indicators supporting our positive bias view, we recommend a buy in this stock for an upside target of 580 keeping a stop loss of 528.

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