Trading ideas by Prabhudas Lilladher: Buy Godrej Consumer Products, Havells

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

NIFTY VIEW

Nifty once again retested near the peak level of 12,040 but failed to maintain the momentum and succumbed to profit-booking. On the upper side, only a breach above 12,080 levels can bring about fresh upward progress else we shall find a rangebound movement for the index. However, support for the week is seen at 39,000/11,700 for Sensex and Nifty, respectively while resistance is seen at 40,400/12,150. Bank Nifty would have a range of 30,680-32,080. We suggest to go for select stocks till further clarification.

BUY GODREJ CONSUMER PRODUCTS 

CMP: Rs 688.05      

TARGET: Rs 735       

STOP LOSS: Rs 650

The stock has formed a positive bullish candle pattern on the daily chart to rise above the significant 50- day moving average (DMA) and has given a breakout above Rs 680 levels which was the resistance level of the consolidation phase to signify strength and has potential to rise further in the coming days. The relative strength index (RSI) also has indicated a trend reversal and has signaled a buy. With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 735 keeping a stop loss of Rs 650.

BUY  HAVELLS    

CMP: Rs 747.95       

TARGET: Rs 810       

STOP LOSS: Rs 710

The stock has formed a double-bottom formation pattern on the daily chart at around Rs 710 levels to maintain a strong base and has formed a positive candle to maintain a positive bias. It looks attractive for further upward movement in the coming days. The stock has been in a trending mode in the long term perspective and we anticipate a decent rise from here on with good volume activity seen. We recommend a buy in this stock for an upside target of Rs 810 keeping a stop loss of Rs 710.

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