Top trading ideas by Prabhudas Lilladher: Buy Mahindra & Mahindra and GNFC

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

MARKET OUTLOOK

Market continues with its upward move with participation coming from all sectors, bringing in momentum in rotational movement in stocks. Even midcap sector on weekly chart has taken support at 200-day moving average (DMA) whereby many stocks are on bounce back with good volume. The support for the day is seen at 35,600/10,720 for Sensex and Nifty, respectively, while resistance is seen at 36,200/10,850. Bank Nifty should have a range of 26,760-27,380. Auto Index has made double-bottom on daily chart, stocks like Maruti, M&M, Hero and Bajaj Auto should bounce from here on.

BUY  Mahindra & Mahindra

CMP: Rs 634.20     

TARGET:Rs 700     

STOP LOSS: Rs 600

The stock has witnessed a decent correction from the peak of Rs 810 in recent times and has bottomed out at near Rs 615 levels to make the chart look very attractive for accumulation and investment. The relative strength index (RSI) has indicated a trend reversal with a positive bias and has signaled a buy. With good volume activity witnessed, we recommend a buy in this stock for an upside target of Rs 700 keeping a stop loss of Rs 600.

BUY  GNFC  

CMP: Rs 252.35        

TARGET: Rs 288      

STOP LOSS: Rs 236

The stock has eroded much of its gain in the recent days and has shown indications of bottoming out at around Rs 238 levels and has given a positive bullish candle pattern on the daily chart to signify strength and has potential to rise further in the coming days. The chart looks very attractive and with the RSI indicating a trend reversal from the highly-oversold zone has signaled a buy. With good volume activity seen in recent days, we recommend a buy in this stock for an upside target of Rs 288 keeping a stop loss of Rs 236.

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