Nifty Bank may hit record high in coming days: Nilesh Jain of Anand Rathi

Nifty Bank has outperformed the benchmarks so far this month. The overall broader structure is hinting at a fresh new high in the January series and as long as it sustains above 31,550 levels

BUY BANK NIFTY | TARGET: 32,600 | STOP LOSS: 31,550

The Nifty Bank index has outperformed so far this week and is showing resilience as every dip is getting bought into. Although, the momentum indicators and oscillators have reached the overbought territory but there aren't any signs of reversal yet. Hence, a further momentum on the higher side is likely to continue. The overall broader structure is hinting at a fresh new high in the January series and as long as it sustains above 31,550 levels, the decline should be utilized as a buying opportunity.

BUY INDUSIND BANK | TARGET: Rs 1,005 | STOP LOSS: Rs 915

The stock has provided a fresh breakout as an 'inverse head and shoulder' pattern on the daily chart. The neckline was placed at 920 levels, which will now act as immediate support. The momentum indicators and oscillators have also provided a buy crossover on the daily chart, which also supports the positive momentum. The stock also witnessed a built-up of long positions with the addition of 5 per cent open interest.

BUY APOLLO TYRE | TARGET: Rs 205 | STOP LOSS: Rs 183

The stock is making a 'higher top and higher bottom' formation for the past few weeks. It has also surpassed the centerline of the Bollinger band, which is called the exponential moving average, and is now heading towards the upper end of the band which is placed at 200 levels. It is also trading well above its short-term and long-term moving averages. The momentum indicator RSI has reversed from the oversold territory and MACD has provided a fresh buy crossover on the daily chart which hints at a further momentum on the higher side.

BUY NESCO | TARGET: Rs 650 | STOP LOSS: Rs 540

The stock has provided a breakout from an 'inverse head and shoulder' on the daily chart. The higher than average volume also supports the price breakout. The conservative target of the pattern is coming around 650 levels. It is also trading well above its short-term and long-term moving averages. The momentum indicator RSI has reversed from the oversold territory and MACD has provided a fresh buy crossover on the daily chart hints of a further momentum on the higher side.

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Disclaimer: Nilesh Jain is Technical and Derivatives Research - Equity Research at Anand Rathi Shares and Stock Brokers. He may have positions in one or all of the above mentioned stocks. Views are personal.