Wednesday’s tail end recovery brings optimism ahead of weekly expiry
In the first half of Wednesday's trading session, Nifty heavyweights Reliance Industries (RIL), Larsen & Toubro (L&T), and HDFC were gripped by bear. On the other hand, Tata Motors' share price gained 7 percent on after a double-digit growth in Land Rover lifted overall sales in the United States. Nifty closed with a positive bias after hovering through a wavy course ahead of the Reserve Bank's policy meet outcome. Sectoral perspective says that the action of optimism for fresh buys are visible in sectors like metals, consumer durables, IT and banking stocks. From Nifty option chain, we can see near next support level for Nifty will be at 12,000.
In the current market scenario, we can see some upside movement in the following stocks:
Buy: NMDC Limited (Above Rs 115)
Target: Rs 130
Stop loss: Rs 106
The stock is depicting a strong trend, with the support of 200 EMA. Breaking the immediate resistance of 115 will bring an upside momentum in the stock. Considering the technical evidence discussed above, we recommend buying the stock above 115 for the target of Rs 130, keeping a stop loss at Rs 106 on closing basis.
Buy: Torrent Power Limited (Above Rs 279)
Target: Rs 295
Stop loss: Rs 269
The stock is showing signals of reversal from lower zones, with the support of 200 EMA. Breaking the immediate resistance of 1334 will bring an upside momentum in the stock. Considering the technical evidence discussed above, we recommend buying the stock above 279 for the target of Rs 295, keeping a stoploss at Rs 269 on a closing basis.
Disclaimer: The analyst does not hold position in any of the stocks mentioned above.