Nifty outlook and top trading ideas by Prabhudas Lilladher for today

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

NIFTY VIEW

In this truncated week, Nifty has already surged yet to a new high now with daily trends also turning positive after 5 days. The support for the day is seen at 38050/11480 while resistance is seen at 38500/11610. Bank Nifty would have a range of 28020-28500. Auto stocks are back in action, focus should now be on Hero Moto, Bajaj Auto and TVS Motor. Larsen and BHEL along with Metal pack have made a good revival and can continue with the momentum. IT sector would take a breather, however, Tech Mah still has a potential upmove.

The stock after the huge correction witnessed has taken a strong support at around 2600 levels forming a double bottom formation in the daily chart and has given a good bounce currently to signify strength and has potential to give a rise further in the coming days. The chart looks attractive and with the RSI indicating a trend reversal has signaled a buy and with good decent volume participation witnessed, we recommend a buy in this stock for an upside target of 2900 keeping a stop loss of 2650.

BUY CUMMINS INDIA
CMP: Rs 708.60
TARGET: Rs 760
STOP LOSS: Rs 665

The stock has indicated a higher bottom formation pattern in the daily chart and currently has given a positive bullish candle pattern to signify potential for further momentum in the upward direction and can scale upto 750-760 levels in the coming days. The RSI has indicated a steep rise along with the MACD showing a trend reversal to maintain a positive bias. With rising volume participation in recent times, we recommend a buy in this stock for an upside target of 760 keeping a stop loss of 665.

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