Market has been facing good resistance at higher levels with Nifty unable to cross the trend line and sectorwise only IT and Bank Nifty are showing some strength while other sectors are plunging. The support for the week is seen at 35,950/10,760 while resistance is seen at 37,180/11,150 for Sensex and Nifty, respectively. The daily trend of Nifty has turned down after six days while weekly is still intact. Bank Nifty has its range of 26,700 -27,920. The weightage is again tilted towards negative among the Nifty50 stocks.
BUY KOTAK BANK
CMP: Rs 1,299.40
TARGET: Rs 1,420
STOP LOSS: Rs 1,245
The stock is gradually rising with a positive bias, forming a higher bottom formation pattern on the daily chart and we anticipate a further rally with the same momentum in the coming days. The indicators are all favorable and with the relative strength index (RSI) on the rise with decent volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 1,420, keeping a stop loss of Rs 1,245.
CMP: Rs 783.85
TARGET: Rs 850
STOP LOSS: Rs 735
The stock has given a decent correction and has indicated signs of bottoming out near Rs 730 – Rs 735 levels and has currently shown a positive bullish candle pattern in the daily chart to signify strength and has potential to rise further in the coming days. The RSI has indicated a trend reversal from the highly oversold zone and signaled a buy to maintain a positive bias. With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 850 keeping a stop loss of Rs 735.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above