DLF, BoB, Tata Motors: How to trade rate sensitive stocks post RBI policy?

The overall trend in rate sensitive stocks is positive and this unchanged policy may trigger further upside, once near term resistances are crossed

The Reserve Bank of India's monetary policy committee kept key interest rates unchanged, while retaining an accommodative stance to help revive the economy, which is facing a slowdown due to the coronavirus pandemic.

Repo rate and the reverse repo rate remain unchanged at 4 per cent and 3.35 per cent, respectively, said RBI Governor Shaktikanta Das in a statement on Friday after a three-day meeting of the committee in Mumbai. READ MORE

The rate sensitive stocks and the benchmark indices firmed up in trade soon after the RBI annoucement. Here's what to expect from key rate sensitive stocks going ahead, basis on the technical analysis.

State Bank of India (SBIN)
Likely target: Rs 500 and Rs 525
Upside potential: 6% to 11%

The shares of State Bank of India have been constantly facing challenge to surpass the important resistance of Rs 470 with aggressive move. Until this does not happen, one cannot expect any major upside, according to the daily chart. After a decisive close above the resistance level, the next breakout point shall be at Rs 500 and Rs 525 levels. The support for the stock stays intact at Rs 450.  CLICK HERE FOR THE CHART
 
HDFC Bank Limited (HDFCBANK)
Likely target: Rs 1,800
Upside potential: 7.50%

The medium-term outlook is bullish as long as the stock upholds the support of Rs 1,460 levels on the closing basis. And the trend moves in the direction of Rs 2,000 level, as per the weekly chart. An aggressive move crossing the selling pressure zone of Rs 1,650 o Rs 1,635 may trigger a sharp upside towards the immediate level of Rs 1,800, from a short-term outlook. The support for the stock is at Rs 1,580. CLICK HERE FOR THE CHART
 
Maruti Suzuki India (MARUTI)
Likely target: Rs 7,700 and Rs 8,330
Upside potential: 3% to 10%

The stock has crossed the 200-day moving average (DMA) placed at Rs 7,190 recently with the Moving Average Convergence Divergence (MACD) rising above the zero line. Both these indications reflect a strong positive bias that could see an upside towards an immediate resistance of Rs 7,700 and may even stretch to the next hurdle at Rs 8,330. The support stays at Rs 7,350.  CLICK HERE FOR THE CHART

Tata Motors Ltd (TATAMOTORS)
Likely target: Rs 450
Upside potential: 18%

Tata Motors has broken out of the consolidation range of Rs 365 to Rs 280 level, as per the weekly chart. This move came with a bearish divergence on Relative Strength Index (RSI) signifying a strong “stock” strength in an upward direction. The trend is heading towards Rs 450 from a broad perspective. The immediate support for the stock exists around Rs 360 and Rs 340 levels.  CLICK HERE FOR THE CHART
 
DLF Ltd (DLF)
Likely target: Rs 460 and Rs 490
Upside potential: 6% to 12%

After a massive surge of over 15 per cent in mere two sessions, the stock has gone sideways and has been consolidating lately. On the upside, a firm move above Rs 433 may see a sharp upside towards Rs 460 and Rs 490 levels. On the lower side support stays at Rs 400 levels, according to the daily chart. The RSI has a support of 60 value and until this value is upheld, the strength may see added interest of market participants. CLICK HERE FOR THE CHART

 
Bank of Baroda (BANKBARODA)
Likely target: Rs 88 and Rs 95.50
Upside potential: 5% to 13%

With a positive crossover which resembles a “Golden Cross “of 50-weekly moving average (WMA) with 100-WMA lately, the positive bias may see stock heading towards 200-WMA placed at Rs 95.90 levels, according to the weekly chart. The immediate resistance comes at Rs 89 levels. The overall bullish bias has a closing basis support of Rs 78. CLICK HERE FOR THE CHART