The indices for now are holding on at higher levels, refusing to correct; however, the IT sector corrected by over 1 per cent with rupee strengthening, while Bank Nifty, too, was well within the range. The support for the day is seen at 37,800/11,380 for Sensex and Nifty, respectively, while resistance is seen at 38,360/11,530. Bank Nifty would have a range of 27,270-29,900. Among banking stocks, Axis, Kotak and PSU banks look favorable. RIL, too, looks positive.
BUY AXIS BANK
CMP: Rs 751.60
TARGET: Rs 820
STOP LOSS: Rs 720
The stock has had a good run in recent times and has given a breakout above Rs 735 levels and maintaining a positive bias still has more steam for further upward movement in the coming days. The relative strength index (RSI) is on the rise and with favourable indicators supporting the chart, the scrip looks attractive. With good volume participation seen, we recommend a buy in this stock for an upside target of Rs 800- Rs 820 keeping a stop loss of Rs 720.
BUY JSW STEEL
CMP: Rs 294.95
TARGET: Rs 326
STOP LOSS: Rs 278
The stock has maintained a good support base near Rs 280 levels near the 34WMA and also the 50-day moving average (DMA) and currently has indicated a bullish candle pattern on the daily chart to signify strength and potential to rise further in the coming days. The RSI has once again indicated a trend reversal to signal a buy and maintaining a positive bias with good volume participation. We recommend a buy in this stock for an upside target of Rs 326 keeping a stop loss of Rs 278.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.