Buy Voltas for a target of Rs 675, stop loss of Rs 575: Prabhudas Lilladher

Nifty outlook and few trading ideas by Vaishali Parekh, research analyst - technical research at Prabhudas Lilladher:

NIFTY VIEW
Nifty and Bank Nifty gets its weekly trend down, so for now this would be considered a bounce back rally. The support for the week is seen at 37,400/11,300 while resistance is seen at 38,620/11,680. Bank Nifty would have a range of 26,480-27,700. Nifty still has a lower top formation unless it crosses 11,580 decisively, further up move can be expected. Cement stocks have shown some momentum. NBFC too after correcting has given a bounce.

BUY ASIAN PAINTS
CMP: Rs 1,333.90
TARGET: Rs 1,440
STOP LOSS: Rs 1,280
The stock has made a higher bottom formation like pattern in the daily chart and looks very attractive with a decent bounce back to signify strength and potential to rise still further upward in the coming days. The RSI has also hit the oversold zone and has shown a trend reversal to maintain a positive bias. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 1440 keeping a stop loss of 1280.

Nifty outlook and top trading ideas from Prabhudas Lilladher for today

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

NIFTY VIEW
Nifty crossed the 11000 mark and made the intraday high of 11078 where it faced a resistance and witnessed some profit booking. On the downside now Nifty has got a support near 10950-10960 levels while on the upper end around 11200 would be the new level. Bank Nifty too found the resistance at the previous peak level of 27164 and succumbed to some profit booking. However, the support for the day would be seen at 10950 while the resistance would be at 11080 levels. The result outcome of Infy can be a trigger for the indices to fresh movement on either side.

BUY VOLTAS
CMP: Rs 546.30
TARGET: Rs 595
STOP LOSS: Rs 510
The stock has made a round bottom formation pattern at 510 levels and gradually is picking up gaining strength and has got potential to rise further in the coming days. The stock has almost given a breakout above the significant 50DMA moving average and has made the positive bias. With the RSI on the rise, the stock looks attractive for further upward move and with good volume participation witnessed, we recommend a buy in this stock for an upside target of 595 keeping a stop loss of 510.

Nifty outlook and top trading ideas from Prabhudas Lilladher for today

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

NIFTY VIEW
Nifty broke the crucial support of 10,700 mark on the back of heavy selling pressure weakening the sentiment and bias as of now. The chances of some more downward slide in the coming days cannot be ruled out and for Nifty now 10,530-10,550 would be the major support level whereas for Bank Nifty the breach of 26,300 levels would disrupt the bias and further selling pressure may be triggered. However, the support for the day is seen at 10,610 while resistance is seen at 10,730.

VOLTAS STOCK PRICE
CMP : Rs 535.25
TARGET : Rs 590
STOP LOSS : Rs 505
The stock has witnessed a good consolidation phase at around 520 forming a strong base near 510 levels and now has produced a positive bullish candle pattern in the daily chart to signify strength and has got the potential to rise further and take the stock to around 580-590 levels. The RSI also has indicated a steep rise with a trend reversal to signal a buy and has maintained a positive bias. With good consistent volume participation witnessed, we recommend a buy in this stock for an upside target of 590 keeping a stop loss of 505.

Voltas declines 8% post Q4 results

Shares of Voltas have declined by 8% to Rs 539 per share on the BSE in early morning trade after the company reported 3% decline in its consolidated net profit at Rs 1.94 billion in March quarter (Q4FY18), due to poor performance of the engineering products and services business. The Tata Group company had profit of Rs 2 billion in the same quarter last fiscal. Gross revenue of the company during quarter under review remained flat at Rs 20.21 billion over the previous year quarter.
“The slowdown impact in engineering products and services segment due to demonetization and GST implementation in the Textile Machinery Industry is well known. In Mining and Construction Equipment, Mozambique operations continue to drive the performance,” Voltas said in a press release.

“Voltas reported below estimate results, mainly due to revenue slippage during the quarter. Revenue at Rs 20.5 billion was flat during the quarter as the important unitary cooling products (AC business) saw 2% decline in revenue, mainly due to restocking by trade channel along with pre-buying in Q3FY18 due to expected price rise from Jan-18 and increased competitive intensity. The improved operating performance was broad based across all segments with 190bps and 80bps improvement in Project business and AC business, respectively,” said analysts at Antique Stock Broking in result review.

Markets check: Buy M&M Finance, Jindal Steel and Voltas

STOCK MARKET - Few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

NIFTY VIEW:
As said earlier, Nifty after the decline from the levels of 10,500, now has broke the significant level of 10,250 and the chances of further profit booking in the coming days cannot be ruled out. We have now the level of 9,980 for Nifty as the crucial support for the near term. However, the support for the day lies at 10,170 while resistance lies at 10,270.

BUY MAH & MAH FINANCE
CMP: Rs 433.55      
TARGET: Rs 470      
STOP LOSS: Rs 413
The stock has been in an upward trending mode and gradually it has been making a higher-bottom formation and with the formation of a bullish candle, the bias has become significantly positive and we anticipate it to rise up further to scale up to Rs 465-470 levels. The RSI has indicated a steep rise and has shown a trend reversal signaling a buy. With volume activity on the rise, we recommend a buy in this stock for an upside target of Rs 470 keeping a stop loss of Rs 413.

BUY VOLTAS
CMP: Rs 576.60      
TARGET: Rs 630        
STOP LOSS: Rs 550
The stock has been on a good run for a long time and maintained the uptrend consistently. The RSI has been on the rise and has significantly maintained the positive bias. We anticipate the stock to rise further with strength and potential and scale fresh new heights of Rs 620-630. With favourable factors supporting our view and decent volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 630 keeping a stop loss of Rs 550.

Technical calls: Buy Voltas, Tata Motors and Apollo Hospitals

Few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

NIFTY VIEW:
Market is unable to sustain at higher levels, though for now there is no negative bias unless 9,680 breaks decisively. With the RSI bouncing back from the oversold zone in the daily chart, we may not rule out a bounce back going to even 10,000 levels. The support for the day is seen at 9,820 while the resistance is seen at 9,900.
 
BUY VOLTAS
CMP: Rs 522.95      
TARGET: Rs 563  
STOP LOSS: Rs 494

The stock after a short correction has taken support at around Rs 500 and is now showing a positive candle with potential to rise further with strength. Also it has taken support at the significant moving average of 144-WMA and looks attractive for further upward move. The RSI has indicated a trend reversal signaling a buy and is supporting our positive bias. We recommend a buy in this stock for an upside target of Rs 563 keeping a stop loss of Rs 494.

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