HDFC Bank, Maruti, DLF: Rate-sensitive stocks are preparing for more upside

Realty stocks are showing strong upside momentum

Benchmark indices scaled fresh lifetime highs on Friday with the S&P BSE Sensex hitting the crucial 45,000-mark for the first time ever after the Reserve Bank of India (RBI) decided to keep repo rate unchanged at 4 per cent and revised the FY21 GDP contraction to 7.5 per cent from -9.5 per cent, earlier. READ MORE

Following the development, the rate-sensitive stocks and sectors were also trading firm in the trade. For instance, Nifty Bank was up over 1 per cent at 29,832 levels while Nifty Auto was ruling nearly a per cent higher at 9,326 levels with 13 out of 15 constituents advancing. similarly, Nifty Realty, too, rallied nearly 1 per cent to 282.50 points. 

Investor sentiment also got a boost after the RBI Governor Shaktikanta Das said that the accommodative stance of the monetary policy will continue as long as necessary to revive growth on a durable basis and mitigate the impact of Covid-19 while ensuring that inflation remains within the target.

That said, let's take a look at how select rate-sensitive counters look on charts and what should be your trading strategy.

State Bank of India (SBIN): After successfully breaching the 200-day moving average (DMA) at Rs 211, the stock is attempting to absorb the selling pressure emerging above Rs 250 levels. The overall trend is indicating a rally in the direction of Rs 273, which is its 200-weekly moving average (WMA).  The Moving Average Convergence Divergence (MACD) has conquered the zero line upward. This shows that the upside momentum is pushing the stock price to higher levels. The closing basis support stays at Rs 240 levels. CLICK HERE FOR THE CHART

HDFC Bank Ltd (HDFCBANK): The next upside towards Rs 1,700 may emerge once the counter manages to close decisively above Rs 1,440 levels. This level has become a selling mark for shorting opportunities and unless a strong move that defeats the negative sentiment does not happen, the next move might not see an added interest of market participants. On the downside, the support stays at Rs 1,320 levels. CLICK HERE FOR THE CHART

Maruti Suzuki India (MARUTI): If this counter sustains above Rs 7,800 mark for a few more sessions, then the breakout may see a huge rally towards Rs 9,000 levels, as per the weekly chart. The horizontal resistance breakout may see an addition in volumes shortly. The closing basis support stays at Rs 7,300 levels. The RSI has crossed the minor resistance of Rs 61 value, an indication of strength gaining upside momentum. CLICK HERE FOR THE CHART

Bajaj Auto Limited (BAJAJ-AUTO):  A bigger breakout above Rs 3,200 levels may see a strong upside towards Rs 3,800 to Rs 4,000 from a medium-term perspective, as per the monthly chart. The counter managed to conquer this resistance after three years, a big momentum rally that may see shorts getting trapped. The immediate support comes in at Rs 2,800 levels, which is its 200-DMA. CLICK HERE FOR THE CHART

DLF Ltd (DLF): Along with the “Higher High, Higher Low” formation on the weekly chart, this counter has broken out of a “Golden Cross” at Rs 192 level, of 50-DMA, 100-DMA, and 200-DMA. This truly suggests the trend ascending towards Rs 240 levels. The closing basis support stands at Rs 190 levels, as per the daily chart. CLICK HERE FOR THE CHART

Oberoi Realty Ltd (OBEROIRLTY): This counter has managed to cross significant resistances of Rs 420 and Rs 500 levels. This momentum is catching up more volumes and the stock strength is not showing any weakness. The trend is heading in the direction of Rs 575 and Rs 600 levels with the closing basis support of Rs 500 levels.  CLICK HERE FOR THE CHART