Nifty has surged for the past 5 days, now nearing our target of 10900-10920 where we would witness profit booking, also volatility index was on rise as we are nearing the Fed outcome. The support for the day is seen at 10790 while resistance is seen at 10900. FMCG sector seems to be getting ready for yet a new high, we have a bullish view for the same & so also is the case with IT Index.
BUY KARNATAKA BANK
CMP: Rs 120.25
TARGET: Rs 140
STOP LOSS: Rs 114
The stock has made a double bottom formation pattern at around 107 levels in the daily chart and with RSI on rise from oversold zone implies signs of bottoming out and ready for a bounce back, which is in sync with PSU Bank Index already giving a break out supports our view. With also the stock moving above the 50 DMA, the bias has been maintained and with decent volume participation witnessed, we recommend a buy in this stock for an upside target of 140 keeping a stop loss of 114.
BUY BHARAT FORGE
CMP: Rs 656.55
TARGET: Rs 700
STOP LOSS: Rs 640
The stock has witnessed a decent erosion from the peak of 777 and has formed a bottom formation at around 628 levels and has currently indicated a bounce to signify strength and with the RSI on the rise and also the MACD has shown a trend reversal to maintain a positive bias and we anticipate it has got the potential to rise further in the coming days. With the volume participation increasing in the recent times, we recommend a buy in this stock for an upside target of 700 keeping a stop loss of 640.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.