outlook and few trading ideas by Vaishali Parekh, research analyst - technical research at Prabhudas Lilladher:
The market is likely to consolidate or maybe oscillate in a narrow range as the ADX on the daily chart has stopped its up move which implies less momentum in days to come. The support for the day is seen at 38,050/11,500 while resistance is seen at 38480/11630. Bank Nifty
would have a range of 28,000-28,460. ICICI and Axis Bank have regained its momentum and we anticipate it to do well for Thursday’s expiry. Pharma sector, too, has got in a new round of momentum.
The stock has witnessed a decent correction from the peak of 557 to bottom out recently at around 308 levels and has indicated a good bounce back with a positive candle pattern now to move past the significant 50 DMA moving average and so as to signify strength and potential to rise further in the coming days and with RSI indicating a trend reversal from the oversold zone has also signaled a buy to maintain a positive bias. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 380 keeping a stop loss of 315.
BUY KAJARIA CERAMICS
CMP: Rs 458.15
TARGET: Rs 530
STOP LOSS: Rs 420
The stock has witnessed a great erosion in recent times from the peak of 765 and now has indicated a bottoming out pattern at around 406 levels. Currently, a positive bullish candle pattern indicates strength and has got the potential to rise further in the coming days to scale to further new heights. The RSI has given a sharp steep reversal and has maintained a positive bias. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 530 keeping a stop loss of 420.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.