Nifty has witnessed a short correction after retesting the peak level of 11,760 and currently, a higher bottom formation pattern is indicated with support taken at 11,560, to signify further upside move in the coming days. A similar view exists for Bank Nifty also, which has 29,600 as an important support level. However, the support for the week would be seen at 38,280/11,480 levels for Sensex and Nifty, respectively, while the resistance would be at 39,580/11,900 levels. Bank Nifty would have a range of 29,500-30,800.
BUY EXIDE INDUSTRIES
CMP: Rs 218.75
TARGET: Rs 240
STOP LOSS: Rs 208
The stock has made a higher bottom formation on the daily chart to signify strength and is on the verge of a breakout above the 50-DMA to improve the bias and with also the relative strength index (RSI) indicating a trend reversal to signal a buy, the chart looks attractive for a further upward movement. With good volume participation picking up, we recommend a buy in this stock for an upside target of Rs 240 keeping a stop loss of Rs 208.
BUY EICHER MOTORS
CMP: Rs 20,980.30
TARGET: Rs 22,500
STOP LOSS: Rs 20,000
The stock has maintained a good base near Rs 20,000 levels and currently has moved past the significant 50-DMA to indicate strong bias and has the potential to rise further for upward targets in the coming days. The RSI has indicated 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 22,500 keeping a stop loss of Rs 20,000.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.