The daily trend in Nifty has turned down after 20 days and after 13 days in Bank Nifty. Though the weightage in Nifty50 is still tilted towards positive, the market has witnessed some choppiness and fatigue at higher levels. Further weakness could be seen with a break of 11,400 levels. The support for the week is seen at 37,520/11,250 for Sensex and Nifty, respectively, while resistance is seen at 38,730/11,640. Bank Nifty would have a range of 28,930-30,150. Stocks with a positive bias are SRF, Mahanagar Gas and Axis Bank.
BUY CASTROL INDIA
CMP: Rs 160.55
TARGET: Rs 180
STOP LOSS: Rs 154
The stock has formed a higher bottom formation pattern on the daily chart taking support at the significant 200-day moving average (DMA) and also has moved past the 50-DMA to signify strength and has improved the bias for further upward movement in the coming days. The relative strength index (RSI) has also indicated a trend reversal to signal a buy and with good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 180, keeping a stop loss of Rs 154.
BUY ASTRAL POLY
CMP: Rs 1,146
TARGET: Rs 1,300
STOP LOSS: Rs 1,080
The stock has been in an upward trending mode and with a slight correction witnessed in recent times, the chart looks attractive for further upward momentum in the coming days. The indicators are all favourable and with the RSI showing a trend reversal, the bias is maintained positive. With decent volume activity witnessed, we recommend a buy in this stock for an upside target of Rs 1,300 keeping a stop loss of Rs 1,080.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.