The week gives a positive start with Nifty touching 10900 levels, with participation coming from all across the sectors. The support for the day is seen at 35980/10800 while resistance is seen at 36540/10950. Bank Nifty would have a range of 26700-27300, Indus Ind Bank and Bharat Fin look positive along with metal stocks and RIL. Nifty may see some resistance at 10950, a move past we can expect a target of 11150.
BUY UNITED BREWERIES
CMP: Rs 1303.10
TARGET: Rs 1440
STOP LOSS: Rs 1240
The stock has taken support at the significant 200 DMA and formed a higher bottom formation pattern in the daily chart to signify strength and has potential to rise further with the same momentum making the chart look attractive. The RSI is on the rise and with a move above 1337 levels shall give a breakout for further more upside targets. With consistent volume activity witnessed, we recommend a buy in this stock for an upside target of 1440 keeping a stop loss of 1240.
BUY TATA CHEM
CMP: Rs 705.45
TARGET: Rs 770
STOP LOSS: Rs 670
The stock has indicated a higher bottom formation pattern in the daily chart and has given a good bounce and currently has produced a positive bullish candle to signify strength and is on the verge of a breakout above the significant 200 DMA moving average to improve the bias. The RSI has given a trend reversal and is on the rise and with decent volume participation witnessed, we recommend a buy in this stock for an upside target of 770 keeping a stop loss of 670.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.