The weekly trend of Nifty has turned down after 9 weeks weakening the sentiment a little bit whereas BankNifty has managed to maintain the weekly trend. Nifty has been moving in a rangebound zone between 10950 and 10550 levels forming a significant barrier and a breach on either side would bring a fresh movement to decide the new trend. However, the support for the week is seen at 35050/10520 while the resistance is seen at 36320/10930 levels. BankNifty would have the weekly range of 26530-27830.
BUY JINDAL STEEL
CMP: Rs 152.35
TARGET: Rs 167
STOP LOSS: Rs 144
The stock has witnessed an erosion from the high of 172 to bottom out at around 145 levels where it has got a good base and currently has produced a positive bullish candle pattern in the daily chart to signify strength and has potential to rise still further up in the coming days. The chart looks attractive and with all the indicators looking favourable, we recommend a buy in this stock for an upside target of 167 keeping a stop loss of 144.
BUY MAHINDRA & MAHINDRA
CMP: Rs 725.60
TARGET: Rs 785
STOP LOSS: Rs 705
The stock has almost formed a higher bottom formation pattern in the daily chart taking support near the 710 level where on the previous occasion also it has formed a good base and rallied. The risk-reward looks decent and attractive and with the stock poised for an upward move in the coming days, there is strength and potential to scale upside targets. With decent consistent volume participation witnessed, we recommend a buy in this stock for an upside target of 785 keeping a stop loss of 705.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.