Support for Nifty seen at 11,460, resistance at 11,840: Prabhudas Lilladher

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

NIFTY VIEW

Market continues to show sideways movement with selective stocks in rotation holding the Nifty level. With rupee continuing to show weakness, has given an impetus to Pharma and IT stocks. The support for the week is seen at 37,950/11,460 while resistance is seen at 39,150/11,840. Bank nifty would have a range of 27,370-28,580. Infra sector has now set into momentum with Larsen looks promising from here.

BUY LARSEN TOUBRO   

CMP: Rs 1,369.55      

TARGET: Rs 1,480    

STOP LOSS: Rs 1,310

The stock has been consolidating near 1350 levels for quite some time and currently has given a breakout above that range and looks promising for further upside in the coming days. The trend has been positive and with the RSI on the rise, a positive bias has been maintained. With good consistent volume activity witnessed, we recommend a buy in this stock for an upside target of 1480 keeping a stop loss of 1310.

BUY  MGL     

CMP: Rs 865.75        

TARGET: Rs 950      

STOP LOSS: Rs 820

The stock has witnessed a decent correction from the peak of 985 to consolidate and bottom out at around 830 levels and currently has moved past the significant 50 DMA moving average to signify strength. The chart looks very  attractive and with the RSI indicating a trend reversal from the oversold zone to signal a buy and has maintained a positive bias. The volume participation has been decent and hence we recommend a buy in this stock for an upside target of 950 keeping a stop loss of 820.

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