Bajaj Auto, DLF, SBI: Strategies for rate sensitive stocks post RBI policy

AU Small Finance Bank and Bajaj Auto seem well placed on the technical charts and should be able to witness decent gains in the weeks ahead.

The Reserve Bank of India kept the repo rate unchanged at 4 per cent in its first policy of FY23, maintaining the status quo and its accomodative stance. 

Further, the Central Bank raised inflation projections for FY23 to 5.7 per cent from 4.5 per cent, while downgrading real GDP estimates to 7.2 per cent vs 7.8 per cent earlier.

The key benchmark indices, S&P BSE Sensex and Nifty 50 were seen hovering close to their previous day's close post policy announcement, and the rate sentive shares too displayed a mixed trend. READ MORE
 

Meanwhile, here's how one can consider to position their trades in select rate sensitive shares going ahead. 

 
State Bank of India (SBIN)
Likely target: Rs 550
Upside potential:  7%

State Bank of India shares were seen successfully trading above the 50-day moving average (DMA), placed at Rs 501 level. The Moving Average Convergence Divergence (MACD) is well positioned above the zero line, rising upward with resolute momentum. The next hurdle falls at Rs 550 and immediate support for the stock comes at Rs 510, which needs to be considered on a closing basis, indicates the daily chart. CLICK HERE FOR THE CHART

AU Small Finance Bank Limited (AUBANK)
Likely target: 1,550
Upside potential:  10%
 
The stock is Rs 21-odd level away from claiming a new 52-week high, the prior peak stands at Rs 1,421. The overall structure represents a bullish breakout if the stock manages to sustain above Rs 1,350 on a weekly closing basis.  The immediate support for the stock exists at Rs 1,300 and Rs 1,250 levels. The price action breakout could see a rally towards Rs 1,550. The MACD trades above the zero line and disapproves any weakness, as per the weekly chart.  CLICK HERE FOR THE CHART

  
DLF Ltd (DLF)
Outlook: Breakout above Rs 410

The shares of DLF has resistance of Rs 410 level, reflects the daily chart. The 100-DMA points at the support mark of Rs 381. An aggressive crossing of the hurdle with robust volume may open doors for Rs 430 and Rs 450 levels. .  CLICK HERE FOR THE CHART
  
Bajaj Auto Ltd (BAJAJA-AUTO)
Likely target: Rs 4,000
Upside potential:  6%

The stock has a “double bottom” breakout, exhibits the weekly chart. This strong move is hinting at Rs 4,000-mark. The stock price already trades 4 per cent higher from the breakout neckline of Rs 3,600 level. The MACD is inching higher with intention of crossing the zero line. When that happens, the momentum in the stock could see an aggravated trend. CLICK HERE FOR THE CHART

 
Larsen & Toubro Ltd (LT)
Outlook:  Resistance at 100-DMA

The 100-DMA placed at Rs 1,852 remains the major resistance for the uptrend. At the same time, the positive sentiment seems intact above the support of Rs 1,800. Only upon violating the support with aggressive volumes, the trend might see a build-up of negative bias. CLICK HERE FOR THE CHART