Buy ITC for a target of Rs 290 and stop loss of Rs 258: Prabhudas Lilladher

Stock Market - Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

NIFTY VIEW
Nifty has resisted around the 10,780 levels and once again was not able to breach the upper band of around 10,820 levels. The momentum witnessed a day before fizzled out and the bias and sentiment turned once again cautious. However, the support for the day is seen at 10,680 while resistance is seen at 10,810. Auto sector continue to show momentum while Cement stocks also has indicated a positive revival.

BUY ITC
CMP: Rs 272.50
TARGET: Rs 290
STOP LOSS: Rs 258
The stock has witnessed a correction from the peak of 288 to indicate signs of bottoming out at around levels and has showed a positive candle pattern in the daily chart to signify strength and potential to rise further in the coming days. The chart looks attractive and with the RSI also indicating a trend reversal has signaled a buy and has maintained a positive bias in the stock. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 290 keeping a stop loss of 258.