Top stock ideas from Prabhudas Lilladher for today: Buy L&T, India Cements

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

NIFTY VIEW

Nifty managed to close above the 10,800 levels but still is in the range bound zone between 10,720 and 10,830 levels while Bank Nifty too has reached near the resistance level of 26,850 levels and a breach on either sides would decide the further movement of the indices. However, the support for the week is seen at 10,620 while the resistance would be seen at 10,980 levels. Cement stocks have indicated a good revival and we anticipate it to continue the same momentum.

BUY LARSEN TOUBRO  

CMP: Rs 1,299.85    

TARGET: Rs 1,390   

STOP LOSS: Rs 1,260

The stock has witnessed a decent correction recently from the peak of 1396 and has now shown indications of  a bottoming out at around 1285 levels which is also where the significant 200 DMA moving average lies. The RSI has hit the highly oversold zone and has indicated a reversal to maintain a positive bias and has potential to rise further in the coming days. With the chart looking attractive and decent volume participation witnessed, we recommend a buy in this stock for an upside target of 1390 keeping a stop loss of 1260. 

BUY INDIA CEMENTS  

CMP: Rs 112.35    

TARGET: Rs 124   

STOP LOSS: Rs 106

The stock has eroded much of it gains in the past 4-5 months from the peak of 205 levels and has shown signs of bottoming out at around 105 levels where a good support is maintained in the daily chart. The chart looks attractive with favorable risk reward ratio and with the RSI hitting the oversold zone has indicated some signs of a revival and we anticipate a good bounce back from here on. With decent volume participation picking up, we recommend a buy in this stock for an upside target of 124 keeping a stop loss of 106.

BUY COLGATE PALMOLIVE  

CMP: Rs 1,179.95    

TARGET: Rs 1,265   

STOP LOSS: Rs 1,150

The stock has witnessed a decent correction from the peak of 1268 and has signs of bottoming out at around the significant 50 DMA which lies at 1172 levels and a higher bottom formation pattern is in the making. The RSI also has touched near the oversold zone and we anticipate a revival from here on in the coming days. With good volume activity witnessed, we recommend a buy in this stock for an upside target of 1265 keeping a stop loss of 1150.

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