Top trading ideas for today: Buy Maruti Udyog, Cholamandalam Finance

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

NIFTY VIEW

It was a decent recovery by Nifty and BankNifty after the formation of the higher bottom pattern and as of now Nifty is feeling the resistance at around 10750 levels as also the BankNifty at around 27000 levels. With midcaps already continuing with the selling pressure, the chances of Nifty witnessing some downward slide cannot be ruled out. However, the support for the week is seen at 10520 while resistance is seen at 10870.

BUY  MARUTI UDYOG

CMP: Rs 8,808.85

TARGET: Rs 9,400

STOP LOSS: Rs 8,500

The stock has been in a consolidation range at around 8700 for quite some time and has dipped down to 8250 levels with good recovery witnessed to take the value again to 8750 levels in recent days. Currently the stock has moved past the significant 34 WMA and also the 200 DMA levels to make the chart look attractive and the indicators are all favourable for an upmove with strength and potential in the coming days. With good decent volume participation witnessed, we recommend a buy in this stock for an upside target of 9400 keeping a stop loss of 8500.

BUY CHOLAMANDALAM FINANCE

CMP: Rs 1,581.60

TARGET: Rs 1,740

STOP LOSS:  Rs 1,460

The stock has made a higher bottom formation pattern in the daily chart taking support at 1465 and has regained strength currently by moving past the significant 50 DMA level and also the 34 WMA and we anticipate further more upward movement in the coming days. The RSI has recently shown a trend reversal and has maintained a positive bias and with good volume activity witnessed, we recommend a buy in this stock for an upside target of 1740 keeping a stop loss of 1460.

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