RBI Policy: Time to be selective in rate sensitives; keep DLF, SBI on radar

As per the charts, SBI and DLF need to conquer the near resistances at Rs 620 and Rs 420, respectively, for fresh gains to emerge.

Shares of rate sensitives' exhibited a mixed trend after the RBI governor, Shaktikanta Das, on Wednesday raised the repo rate by 35 basis points on expected lines. The decision was taken with a 5:1 majority. 

Also read:  Rate sensitive shares trade mixed as RBI hikes repo rate by 35 bps to 6.25%

The Central Bank, RBI, however, lowered its GDP growth forecast for FY23 to 6.8 per cent from 7 per cent earlier. With today's rate hike, RBI has so far increased interest rates by 225 bps (basis points) from May this year. For LIVE policy updates and expert comments, click here.
 

Meanwhile, here's a technical outlook on select rate sensitive stocks

State Bank of India (SBIN) 

Likely target: Rs 700 (once Rs 620 is crossed)

Upside potential: 12%

Shares of State Bank of India will only breakout if the hurdle of Rs 620 gets surpassed with robust volumes. As and when this happens, a fresh rally could see the price soar to Rs 700 on immediate scale. The support for the stock lies at Rs 600 and Rs 590 levels.  CLICK HERE FOR THE CHART

DLF Ltd (DLF) 

Outlook: Breakout over Rs 420 

The stock has a barrier range from Rs 410 to Rs 420, shows the daily chart. Only upon conquering this hurdle will the stock see the next level of up move. At this juncture, Rs 390 could be seen as a support, which needs to be placed on the closing basis. The overall chart construct points to a bullish bias, with stock witnessing accumulation closer to Rs 390 mark. CLICK HERE FOR THE CHART

Indiabulls Housing Finance Ltd (IBULHSGFIN)

Likely target: Rs 170

Upside potential: 17%

Indiabulls Housing Finance shares have surpassed the major hurdle of Rs 145, with strong volumes. This move points to a breakout that may see trend heading towards Rs 170. For now on, until the stock sustains over Rs 140, its recent accumulation mark, the trend is projected to remain buoyant. The next short-term support for the stock comes to Rs 135.CLICK HERE FOR THE CHART

Bajaj Auto Ltd (BAJAJ-AUTO)

Outlook: Tussle at Rs 3,800

After breaching Rs 3,800 in September this year, shares of Bajaj Auto are tussling to surpass the same mark. A breakout over Rs 3,800 could see the stock heading towards Rs 4,000-mark. While the current chart texture displays a hold of Rs 3,600 level as a cushion, the trend on candlestick pattern looks sluggish, as per the daily chart. CLICK HERE FOR THE CHART

Mahindra & Mahindra Financial Services Ltd (M&MFIN)

Outlook: Needs to sustain Rs 240 mark

If shares of Mahindra & Mahindra Financial Services succeed to maintain a positive move above Rs 240 mark, the resilient trend would foster a bullish rally that could hit a new record high. The current all-time is at Rs 257.50. The stock could even rally further towards Rs 280 level. Immediate support for the stock exists at Rs 210 and Rs 200. CLICK HERE FOR THE CHART