Buy Asian Paints for target of Rs 1370, SL of Rs 1190: Prabhudas Lilladher

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

NIFTY VIEW

Nifty with its one way fall from 11,750 to a low of 10,200 with oversold zone, a bounce is expected up to 10,500-10,550. The support for the day is seen at 34,220/10,280 while resistance is seen at 34,730/10,420. Volatility index too in its overbought zone, its time it retraces which would bring instability under control. Bank Nifty would observe a range of 24,350-24,880. A close below 10,260 would negate the view and perhaps witness new round of selling.

BUY ASIAN PAINTS

CMP: Rs 1,247.80

TARGET: Rs 1,370

STOP LOSS: Rs 1,190

The stock has corrected from the peak of 1490 and currently has shown signs of bottoming out at around 1190 levels and produced a positive bullish candle to signify strength and potential to rise further in the coming days. The chart looks attractive for initiating a buy call and with RSI indicating a trend reversal from the highly oversold zone, a positive bias has been maintained. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 1370 keeping a stop loss of 1190.

BUY BATA INDIA

CMP: Rs 893.80

TARGET: Rs 1,000

STOP LOSS: Rs 840

The stock has witnessed a steep correction in the past one month from the peak of 1115 to indicate signs of bottom out at around 845 levels and has made the chart look very attractive. The RSI has witnessed a steep fall and currently from the oversold zone has indicated a pullback with a trend reversal to maintain a positive bias and also with good volume activity maintained in the stock, we recommend a buy in this stock for an upside target of 1000 keeping a stop loss of 840.