ETMarkets Smart Talk | Nifty in overbought zone; Vaishali Parekh’s 3 stock ideas for next week

, and are 3 stocks on which Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher, is bullish on. In this chat with
ETMarkets, she says that select counters in PSU banks, infra, and cement can lead to a gain of 10-15%. Edited excerpts:
After Nifty scaled an all-time peak of 18,781.95 on Thursday, do you think that the market is giving signs of being at overbought levels on the charts? What are the key levels to watch out for next week?

Market has definitely gone in an overbought zone, but still there is inherent strength witnessed on the daily chart. There is an Inverted Head and Shoulder pattern, which has a projected target of around 19,900-20,000 levels and after a short consolidation or correction can further regain strength.
The banking index hit record highs much before the headline index. Relative to Nifty, do you think Nifty Bank is looking weaker now?

We have an upside projected target of 44,500 on Nifty Bank but a break of 43,000 gives next levels of 42,500-42,000. The index is overall moving within a range of 42,700 and 43,400 zones and a decisive breach above would trigger fresh upside movement for targets of 44,500-45,000 levels.
The mid and smallcap indices, which have been lagging behind, are now showing strength. Do you see the momentum continuing in the days ahead?
Definitely look for quality stocks to gain a return of 10-15% for particular select counters like PSU banks, infra, cement where the midcap stocks can gain momentum in the coming days and can yield decent returns.

After the 14% upside seen in the shares of Pepsico bottler in the week, where do you see the stock going ahead now?

VBL has moved very high. Traders can look for a target of Rs 1,400-1,450. The current candle pattern indicates renewed momentum with good volume participation whereby the projected target is likely to be achieved.
Which are the 3-4 key trading ideas for the new week?
Buy Tata Steel at Rs 111. Stop loss: Rs 105. Target price: Rs 125

The stock looks promising. It has moved past the significant 200-DMA level of Rs 109 with an improving bias and anticipating further rise in the coming days.
Buy Torrent Power at Rs 548. Stop loss: Rs 535. Target price: Rs 570

The stock has formed a higher lows pattern on the daily chart and already is in a strong trending mode with RSI getting stronger and has potential to carry on the momentum.
Buy Indiamart at Rs 4,470. Stop loss: Rs 4,400. Target price: Rs 4,800
The stock has maintained a strong base near Rs 4,350 levels and has indicated a decent pullback just moving past the significant 200-DMA level of Rs 4,440 to improve the bias.