Bank Nifty would be in a range of 28,000-28,520, says Prabhudas Lilladher

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

NIFTY VIEW

Market is precariously overbought with few main frontline stocks supporting the index like RIL, Bank Nifty though succumbing to some selling, however, the trend remains intact. The support for the day is seen at 38,650/11,670 while resistance is seen at 39,120/11,800. Bank Nifty would have a range of 28,000-28,520. Pharma sector, though, positive has taken a breather while Metal & Auto look promising from here on along with HDFC Twins.

BUY GUJ ALKALI

CMP: Rs 576.75

TARGET: Rs 670

STOP LOSS: Rs 540

The stock has been in a consolidation phase for quite some time at around 560 levels and currently has indicated a positive bullish candle to signify strength and has potential to rise further in the coming days to scale till 670 levels. The stock has maintained above the significant moving averages of 34 WMA, 50 DMA and with the RSI indicating a trend reversal has signaled a buy. With decent volume participation witnessed, we recommend a buy in this stock for an upside target of 670 keeping a stop loss of 540.

BUY STERLITE TECH

CMP: Rs 365.15

TARGET: Rs 410

STOP LOSS: Rs 342

The stock has made a series of higher bottom formation pattern in the daily chart and currently, also a similar pattern has been formed with a positive bullish candle moving above the significant 34WMA moving average and strength has been maintained for further upside momentum. The RSI has made a steep rise with a trend reversal and with the stock moving in an upward trend, we recommend a buy in this stock for an upside target of 410 keeping a stop loss of 342.