Nifty outlook and top trading ideas by Prabhudas Lilladher

NIFTY VIEW

Nifty has been finding resistance near the 11,730 levels since the past two days while Bank Nifty has been in consolidation for 3-4 days failing to cross the 30,500 levels decisively. The indices hovering around their peak levels are vulnerable to profit-booking; however, the support for the day would be seen at 38,750/11,650 levels for Sensex and Nifty, respectively, while the resistance would be at 39,340/11,770 levels. Bank Nifty would have a range of 30,000-30,660.

BUY TCS    

CMP: Rs 2,079.30        

TARGET: Rs 2,250       

STOP LOSS: Rs 2,000

The stock has indicated a clear breakout above the trendline resistance of Rs 2,040 levels and is heading for next target of Rs 2,100, which when decisively breached would have further targets of Rs 2,200 – Rs 2,250. The RSI is on the rise and the stock has maintained a very positive bias with all the indicators supporting. With good decent volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 2,250 keeping a stop loss of Rs 2,000.

BUY TATA ELXSI      

CMP: Rs 980.05       

TARGET: Rs 1,080      

STOP LOSS: Rs 950

The stock has formed a more or less higher bottom formation pattern on the daily chart and the positive candle has made the stock look attractive. It has maintained a positive bias for further upside rise in the coming days. The RSI has indicated a trend reversal to signal a buy and with good volume activity witnessed, we recommend a buy in this stock for an upside target of Rs 1,080 keeping a stop loss of Rs 950.

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



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