With market being in overbought zone, it is advisable to book profit and see the next move of the market. Support for the week is seen at 37,370 and 11,220 for Sensex and Nifty, respectively, while resistance is seen at 38,560 and 11,600. Bank Nifty would have a range of 28,700-29,930. Besides, among the Nifty50 stocks, 42 are on the positive side which will doesn’t last for long. This, too, implies some profit-booking. Stocks like M&M, Tata Chemicals, BHEL, BEL, etc look positive from here on.
CMP: Rs 67.80
TARGET: Rs 75
STOP LOSS: Rs 63
The stock has made a decent correction right from Rs 71.35 to Rs 66 levels and has made a trend reversal with a healthy green candle pattern. It has given a close above 34-WMA which is significant. The relative strength index (RSI) indicator also has confirmed the buy signal with a trend reversal and we anticipate this stock to rally upto Rs 75 levels. We recommend a buy in this stock keeping a stop loss of Rs 63.
BUY HDFC LIFE
CMP: Rs 369.85
TARGET: Rs 400
STOP LOSS: Rs 340
The stock has made a good correction from around Rs 393.70 level to consolidate near the Rs 365 levels which is forming a good support level. The stock has rallied with good volume participation and with the positive indicator like RSI, we anticipate it to move further upwards to around Rs 400 levels. We recommend a buy in this stock keeping a stop loss of Rs 340 for an upside target of Rs 400.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.