Top trading ideas by Prabhudas Lilladher: Buy Indraprastha Gas, HUL

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

MARKET VIEW

The Nifty index has been witnessing a tight range-bound movement between 11,650 levels on the downside which is where the significant 50-day moving average (DMA) lies and 11,900 levels on the upper hand and it needs a decisive breach on either side to bring about a fresh directional movement. However, the support for the week lies at 38,800/11,600 levels for the Sensex and Nifty, respectively, while the resistance lies at 40,050/12,000 levels. Bank Nifty would have a range of 30,500-31,750.    

BUY  Indraprastha Gas (IGL) 

CMP: Rs 314.65     

TARGET: Rs 340     

STOP LOSS: Rs 306 

The stock has witnessed a decent erosion recently and has taken support near Rs 308 levels which is the also the trendline support base connecting the previous major bottoms. The relative strength index (RSI) also is indicating a trend reversal from near the oversold zone and has signaled a buy. With a good volume participation witnessed and the chart looking attractive, we recommend a buy in this stock for an upside target of Rs 340 keeping a stop loss of Rs 306.   

BUY  Hindustan Unilever (HUL)   

CMP: Rs 1,787.60   

TARGET: Rs 1,860   

STOP LOSS: Rs 1,745

The stock has formed a higher bottom formation pattern on the daily chart taking support near Rs 1,745 levels which is also near the 50-DMA and has currently indicated a bounce back with a positive bias to imply further upward move to retrace the previous peak level. The RSI has indicated a trend reversal to signal a buy and with good consistent volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 1,860 keeping a stop loss of Rs 1,745.

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