outlook and few trading ideas by Vaishali Parekh, research analyst - technical research at Prabhudas Lilladher:
continues to slide but as of now has taken support at 34WMA with RSI now at 54 levels implying further corrective move. The support for the day is seen at 37,920/11,450 while resistance is seen at 38,380/11,580. Bank Nifty would have a range of 27,180-27,670. Most of the frontline stocks from FMCG, Metals etc, except for Tech stocks witnessed corrective move. RIL too has held the market along with Axis Bank.
Pharma sector needs to stabilize for the next round of momentum. Overall we maintain a cautious view.
The stock has indicated almost a higher bottom formation pattern in the daily chart taking support at around 620 levels and looks promising for an upside move in the coming days. The stock has indicated a positive candle to signify strength and has potential to carry on the momentum still further upside. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 690 keeping a stop loss of 610.
BUY BAJAJ FINANCE
CMP: Rs 2,746.30
TARGET: Rs 3,000
STOP LOSS: Rs 2,620
The stock has given a decent correction from the peak of 2995 levels to show signs of bottoming out at around 2680 levels and has given a good revival to signify strength and can carry on the momentum with positive bias in the coming days. The chart looks attractive and with good volume activity witnessed, we recommend a buy in this stock for an upside target of 3000 keeping a stop loss of 2620.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.