The market has got into the festive mood with all large-cap and now also the mid-cap stocks have started participating, RSI on the daily chart being at 59 calls for a further strong up move. The support for the day is seen at 36080/10840 while resistance is seen at 36620/10970. Bank Nifty would have a range of 26880-27470. PSU Banks too have started participating with SBI taking the lead. All large-cap like LT, Sun Pharma, RIL, etc. continue to look positive.
BUY SUN PHARMA
CMP: Rs 433.45
TARGET: Rs 485
STOP LOSS: Rs 395
The stock has witnessed a great erosion from the peak of 605 levels and has currently bottomed out at 397 levels and indicated a bounce back. The chart looks very attractive and the risk-reward ratio is too good to make a fresh entry. The RSI has shown a trend reversal from the oversold zone and has signaled a buy. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 485 keeping the stop loss of 395.
CMP: Rs 1136.40
TARGET: Rs 1240
STOP LOSS: Rs 1095
The stock has taken support at the significant 200DMA moving average to make a higher bottom formation pattern in the daily chart and has given a decent bounce. The stock has moved past the 50DMA and 34WMA moving averages to signify strength and has the potential to rise further with the same momentum in the coming days. With the RSI also on the rise and other favourable indicators supporting, we recommend a buy in this stock for an upside target of 1240 keeping a stop loss of 1095.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.