The daily trend of Nifty has turned down after 7 days, with a close below 11700, implying some sideways consolidation to see some profit booking but the bias still continues to be intact now with the near-term support of 11600-11400. The support for the day is seen at 38440/11600 while resistance is seen at 38900/11730. Bank Nifty would have a range of 27840-28320. Pharma index has once again got into the new round of momentum and we anticipate a target of 10500. ITC too looks very positive for long-term BUY.
BUY INDIAN HOTEL
CMP: Rs 134.90
STOP LOSS: Rs 127
The stock has maintained a strong base at around 124 levels on several occasions and currently has formed a positive bullish candle pattern in the daily chart to signify strength and has good potential to rise further in the coming days. The stock has also moved past the significant 200 DMA moving average and also the RSI has made a strong recovery with a steep rise to maintain a positive bias and also the MACD has indicated a buy signal. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 150 keeping a stop loss of 127.
CMP: Rs 665.80
TARGET: Rs 730
STOP LOSS: Rs 630
The stock has indicated a breakout above the consolidation range of 645 -660 and looks very attractive for further upside movement in the coming days. The RSI also has indicated a trend reversal and has signaled a buy in the daily chart. The bias has been maintained positive with the stock maintaining above the significant 50 DMA and with decent volume participation witnessed, we recommend a buy in this stock for an upside target of 730 keeping a stop loss of 630.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.