Buy SBI for a target of Rs 282, stop loss of 250: Prabhudas Lilladher

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

NIFTY VIEW

Nifty has its trend of all periodicities down, however for now 10,550 holds to be a crucial support level & a decisive move past 10,730-10,750 would make way for higher targets. The support for the day is seen at 10,600 while resistance is seen at 10,710. Paint stocks and energy sector should do well in days to come. With the onset of result earnings, we anticipate stock specific momentum.

The stock has witnessed a decent erosion from the peak of 290 to show signs of bottoming out at around 255 levels which is also where the significant 50 DMA moving average lies. The chart looks attractive and we anticipate a bounce back from here on in the coming days. With good volume participation witnessed,  we recommend a buy in this stock for an upside target of 282 keeping a stop loss of 250.

BUY HIND ZINC   
CMP: Rs 279.80      
TARGET: Rs 300     
STOP LOSS: Rs 268

The stock has made a lower bottom formation pattern in the daily chart at around 270 levels and has indicated a revival with strength and potential to rise further in the coming days. The RSI also has hit the highly oversold zone and has indicated a trend reversal to signal a buy and thus maintaining a positive bias for still more upward move. With good volume participation witnessed and the chart looking attractive, we recommend a buy in this stock for an upside target of 300 keeping a stop loss of 268.

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