and few trading ideas by Vaishali Parekh, research analyst - technical research at Prabhudas Lilladher
Market continued to surge on Monday with all sectors participating; however with the strengthening in rupee, IT stocks got in corrective move. The support for the day is seen at 36,770/11,100 for Sensex and Nifty, respectively while resistance is seen at 37,330/11,230. Bank Nifty would have a range of 27,670-28,250. Mid-cap space, too, has been doing well now has moved past the resistance level along with auto and pharma sectors, showing signs of revival. Metal continues to show strength.
BUY VRL LOGISTICS
CMP: Rs 267.95
TARGET: Rs 305
STOP LOSS: Rs 244
The stock has given a good bounce showing tremendous strength and maintaining a strong base near Rs 238 levels and has the potential to rise further in the coming days. The relative strength index (RSI) has recovered strongly from the oversold zone and is on the rise to maintain a positive bias. With good decent volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 305 keeping a stop loss of Rs 244.
BUY ENGINEERS INDIA
CMP: Rs 115.05
TARGET: Rs 130
STOP LOSS: Rs 108
The stock has formed a nice higher bottom formation pattern on the daily chart and has signified fresh upward movement maintaining above the significant 34-WMA (weighted moving average). The RSI is on the rise and has shown a trend reversal to signal a buy for a second upper round of momentum. With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 130 keeping a stop loss of Rs 108.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.