SBI, DLF: Trading strategies for rate sensitive stocks post RBI policy

Selective rate sensitive stocks may rise up to 12 per cent

Shares of rate sensitive stocks will be in limelight following the decision of RBI Monetary policy to hold the rates unchanged for the second consecutive meeting. 

Shares of Bajaj Auto set a new historic peak, State Bank of India and Axis Bank were seen trading with strong bullish bias on Thursday. Likewise, DLF and Bajaj Finserv traded sideways.

Nifty Bank index achieved a new all-time high on Thursday, with sentiment building robust structure. 

Here’s the technical outlook on rate sensitive stocks post RBI Monetary policy:-

State Bank of India (SBIN) 

Likely target:  Rs 620  

Upside potential: 5%

The daily chart of State Bank of India hints to a formation of “Rising channel pattern”. The stock is witnessing accumulation on the lower rising trend line. 

The immediate support comes in the range of Rs 585 to Rs 580 level. Volume during the formation has remained sluggish, which is normal in the said pattern. The next hurdle for the stock exists at Rs 620- Rs 615 range. The trend is robust, with inclination towards Rs 650. CLICK HERE FOR THE CHART

Bajaj Auto Ltd (BAJAJ-AUTO)

Likely target: Rs 5,200

Upside potential: 9%

Shares of Bajaj-Auto continue to maintain its bullish run, by scaling higher peaks with successive volume. The price action is resilient and aggressive, making selling pressure unrecognizable. 

The key support levels are at Rs 4,600 and Rs 4,480, as per the daily chart. The current momentum is signaling a rally towards Rs 5,200 levels. Any throwback could be an advantage to add more long positions from a medium-term perspective.  CLICK HERE FOR THE CHART

DLF Ltd (DLF) 

Likely target: Rs 540

Upside potential: 10%

Following the breakout of “Golden Cross”, the stock has entered in a total bullish zone. With the support of Rs 485-mark, the optimistic bias may rally towards Rs 540 levels. The stock has sharply risen lately, yet the strength Indicator, the Relative Strength Index (RSI) is not suggesting selling pressure in its overbought region. 

While volumes have remained sluggish, higher volumes are more on bullish candles signifying underlying positivity, as per the daily chart.  CLICK HERE FOR THE CHART

Bajaj Finserv Ltd (BAJAJFINSV)

Likely target: Rs 1,600

Upside potential: 8.50%

While the shares of Bajaj Finserv trade beneath the 200- day moving average (DMA), the current trend indicates a bullish bias. Until the support of Rs 1,450 isn’t breached, the upside bias shall remain in rising trend. 

The 200-DMA is at Rs 1,506-mark where the stock is aiming to reach. If manages to leap over, the breakout shall transpires the next trend to Rs 1,650, its next key hurdle. CLICK HERE FOR THE CHART

Axis Bank Ltd (AXISBANK)

Likely target: Rs 1,100

Upside potential: 12%

The recent sharp rally that marked a new all-time high reveals strong momentum. The trend is furious and rallying with vigor. 

With the support of Rs 910, the stock might easily reach Rs 1,100 levels, as per the setup of daily and weekly charts. The stock has formed a positive crossover of 50-DMA and 100-DMA, suggesting that the short-term trend to remain in bulls tent. CLICK HERE FOR THE CHART