Nifty and Bank Nifty have all of their periodicities down, implying weakness in the market. Sectorwise, it is still the IT stocks which are relatively placed well and Reliance Industries (RIL) shows some strength on up move. The support for the week is seen at 35,230/10,540 for Sensex and Nifty, respectively while resistance is seen at 36,400/10,920. Bank Nifty would have a range of 26,200-27,420. Market continues to be very choppy with a corrective bias. Hence, our view is cautious and corrective. Nifty so far has sustained within the channel and held the support of 10,600.
BUY RELIANCE INDUSTRIES
CMP: Rs 1,244.45
TARGET PRICE: Rs 1,350
STOP LOSS:Rs 1,200
The stock has indicated a higher bottom formation pattern on the daily chart and has given a positive candle to signify strength and has a potential to rise further with a positive bias in the coming days. The indicators are looking favorable and with good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 1,350, keeping a stop loss of Rs 1,200.
BUY YES BANK
CMP: Rs 219
TARGET PRICE: Rs 280
STOP LOSS: Rs 180
The stock has witnessed a huge spurt and strength and we anticipate a good rise from here on in the coming days. The relative strength index (RSI) has given a steep rise with a trend reversal and with favourable indicators supporting and with good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 280 keeping a stop loss of Rs 180.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.