Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:
Nifty after making a low of 10,049 gave a bounce up to 10,155 while Bank Nifty gave a bounce up to 24,355, however the selling pressure continues at higher level with advance-decline also being in negative market continues to be choppy & corrective.
BUY SARDA ENERGY
CMP : Rs 480
TARGET : Rs 535
STOP LOSS : Rs 440
The stock has made a bottom at around 400 levels and has made a good recovery. With RSI on the rise, the stock looks promising for un upside target of around 535 levels. We recommend a buy in this stock keeping a stop loss of 440.
BUY CHOLAMANDALAM FINANACE
CMP : Rs 1,450
TARGET : Rs 1,550
STOP LOSS : Rs 1,350
The stock has produced a wonderful rally from low of 1205 and now it has made a higher bottom formation pattern in the daily chart also given a breakout above the previous peak of around 1490 levels. The stock look attractive with the RSI on the rise and also the MACD has indicated a trend reversal thus signaling a buy. With good volume throughout the year, we recommend a buy in this stock for an upside target of 1550 keeping a stop loss of 1350.
BUY BHARAT FINANACE
CMP : Rs 1,073
TARGET : Rs 1,120
STOP LOSS : Rs 1,030
The stock has been consolidating for some time at around 1020 to 1080 levels and now it has given a spurt with a positive candle pattern accompanied with good volume. The RSI indicator has been on the rise, we recommend a buy in this stock for an upside target of 1120 keeping a stop loss of 1030.
The analyst may have positions in any or all the stocks mentioned above.