Web Exclusive
Weekly market outlook and two trading ideas by Prabhudas Lilladher

NIFTY VIEW

Market continues to be rangebound and doesn't seem clear about the direction; so, technically, Nifty needs to take support and hold on to 10,850 levels to expect a rise to 11,200-11,300 levels. Else, a break of 10,850 brings in further slide. This being a truncated week market would have a weekly range of 36,580/10,780 for Sensex and Nifty, respectively, while resistance would be at 37,940/11,220. Bank Nifty would have a range of 26,650-28,050 levels. Metal stocks look attractive at these levels. 

BUY  TATA CHEM  

CMP: Rs 584.30      

TARGET: Rs 640      

STOP LOSS: Rs 545

The stock has formed a double bottom formation pattern on the daily chart at around Rs 545 levels and has given a decent bounce back to improve the bias and has the potential to rise further in the coming days owing to favorable indicators. The relative strength index (RSI) has also indicated a trend reversal from the oversold zone and is on the rise and with good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 640, keeping a stop loss of Rs 545.  

BUY  RECL   

CMP: Rs 144.25      

TARGET: Rs 165      

STOP LOSS: Rs 134

The stock has almost made a higher bottom formation pattern on the daily chart, maintaining above the significant 200- day moving average (DMA) which lies near Rs 135 levels to imply strength and potential to rise further. The base has been maintained strong near Rs 130 levels which forms a double-bottom pattern. With good volume activity seen, we recommend a buy in this stock for an upside target of Rs 165, keeping a stop loss of Rs 134.

=========================

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


Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel