RBI policy: Any weakness in rate sensitive stocks is an opportunity to buy

Nifty Bank is expected to touch 36,600 levels, as per the technical chart

The Reserve Bank of India's on Friday kept the benchmark interest rate unchanged amid coronavirus uncertainty and fears over inflation. The repo rate (lending rate) will continue at 4 per cent and reverse repo rate (RBI’s borrowing rate) at 3.35 per cent. With this, the repo rate has remained unchanged for a sixth consecutive time.

Meanwhile, the central bank has cut its projection for gross domestic product (GDP) growth for fiscal 2021-22 (FY22) to 9.5 per cent from the earlier forecast of 10.5 per cent. Consumer price inflation (CPI), the central bank said, is likely to be at 5.1 per cent in FY22 as compared to the earlier forecast of 5.2 per cent. READ MORE HERE

Most interest rate sensitive stocks are trading mixed at the bourses. Charts suggest any weakness should be used as an opportunity to go long on these counters. 

NIFTYBANK
Likely target: 36,600
Upside potential:   3%

After a successful move above 34,800 levels over the last few weeks, the index is heading towards 36,600 mark, which is the next resistance level, as per the daily chart. Until the index does not show major weakness below 35,000 levels, the upside bias will remain and can take the index to higher levels. The overall trend is bullish, as per the daily chart. CLICK HERE FOR THE CHART

NIFTY REALTY
Likely target: 370 and 380
Upside potential:   3.50% and 6.50%

The index has conquered the resistance of 345 levels. The recent move indicates a rally towards 370 and then 380 levels, as per the daily chart. The immediate support comes at 340, which has seen a gap-up level. The overall trend looks bullish with the Moving Average Convergence Divergence (MACD) conquering the zero line upward.  CLICK HERE FOR THE CHART

NIFTY AUTO
Likely target: 11,000 and 11,200 ( after breakout above 10,850)
Upside potential:   1.38% -  3.23%

This index needs to conquer the hurdle of 10,850 mark to move towards 11,000 and then 11,200 levels. It has seen a steady upside and is expected to continue the same momentum. On the downside, until the index defends the support of 10,350 mark, the positive bias is likely to hold over the medium-term.  CLICK HERE FOR THE CHART
 
 
State Bank of India (SBIN)
Likely target: Rs 452 and Rs 465
Upside potential:  3% and 6%

After conquering the resistance range of Rs 427 –Rs 430 levels, SBI is set to climb higher levels of Rs 452 and then Rs 465 in the coming sessions, as per the daily chart. The Relative Strength Index (RSI) is witnessing strong buying momentum in the overbought category, highlighting underlying strength. The immediate support comes at Rs 430 and Rs 425 levels.  CLICK HERE FOR THE CHART
 
ICICI Bank Ltd (ICICIBANK)
Likely target: Rs 680
Upside potential:   5%

The next breakout for this counter is above Rs 680 mark. That’s said, until the counter holds the support of Rs 640 on the closing basis, the upside bias is expected to remain and ICICI Bank can breakout above the resistance of Rs 680 levels. The next support comes at Rs 620 levels.  CLICK HERE FOR THE CHART

DLF Ltd (DLF)
Likely target: Rs 340 and Rs 335
Upside potential:  6% and 11%

A clear breakout above the support of 100-days moving average (DMA) indicates a rally towards Rs 320 and then Rs 335 levels. The 100-DMA support comes at Rs 281. The up move is supported by the MACD, which has crossed the zero line successfully, as per the daily chart.  CLICK HERE FOR THE CHART

Maruti Suzuki India (MARUTI)
Likely target: Rs 7,400 and Rs 7,800
Upside potential:   2.56% - 8.11%

The counter has crossed the 200-DMA after two-and-half months, placed at Rs 7,135 mark. The current sentiment indicates a move in the upward direction towards the immediate resistance of Rs 7,400 levels. The overall bullishness suggests an rally towards Rs 7,800 levels. The positive bias will remain intact if the counter sustains above the support of 7,000 levels. CLICK HERE FOR THE CHART

Tata Motors Ltd (TATAMOTORS)
Likely target: Rs 345
Upside potential:   5.80%

The overall trend is positive above the support of Rs 305 levels. The counter is gradually rising upward and the next resistance comes at Rs 345, which was the gap-down level, as per the daily chart. The RSI and MACD are trading with a positive crossover, indicating an upward bias. CLICK HERE FOR THE CHART