Support for Nifty seen at 9,720, resistance at 9,810: Prabhudas Lilladher

Recommends buying NIIT Tech, Firstsource Solutions and IG Petro,

Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:
 
NIFTY VIEW:
 
Market has been corrective from 10,178 levels which is around 5% , we may see some bounce from here, but checking the daily charts the ADX is likely to rise with MDI crossover PDI indicating a break of 9,700 would accelerate the fall to lower levels. To think otherwise we will have to wait for indicators to show signs of reversal. The support for the day is seen at 9,720 while resistance for the day is seen at 9,810.

  

FIRSTSOURCE SOLUTIONS – BUY
CMP: Rs 41.75    
TARGET: Rs 46     
STOP LOSS: Rs 39.50
 
The stock has made a higher bottom formation pattern in the daily chart and has taken support at the significant moving average of 34WMA and looks attractive and potential for further upward bounce. The RSI has indicated a reversal and is supporting our positive bias along with other favourable factors. With decent volume participation witnessed, we recommend a buy in this stock for an upside target of 46 keeping a stop loss of 39.50
 
NIIT TECH - BUY     
CMP: Rs 547.85      
TARGET: Rs 600     

STOP LOSS: Rs 520
 
The stock made the low of 462 and has bottomed out there and from there on has made a steady gradual rise with potential and we anticipate further more rally in the coming days. The RSI has been on the rise while also the MACD  has shown a rising trend indicating a positive bias. With overall volume looking decent, we recommend a buy in this stock for an upside target of 600 keeping a stop loss of 520.
 
IG PETRO - BUY     
CMP: Rs 620.60       
TARGET: Rs 690     
STOP LOSS: Rs 560
 
The stock has made a higher bottom formation like pattern in the daily chart with some consolidation seen in the past 3-4 days and we anticipate further rise in the stock with potential and strength. The stock has been in a good trending mode and with RSI on the rise and also MACD showing a positive indication, the factors are favourable for a good bounce further in the coming days. With good volume activity seen, we recommend a buy in this stock for an upside target of 690 keeping a stop loss of 560.

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