Markets likely to continue its bull run
Nifty is in upward momentum and marching towards its new all-time above 11,760. Though Oscillators have turned overbought, the index can extend the rally even from the current levels. The reason for being bullish even at this level is that it has broken out from long four-month consolidation range of 10,600-11,000. We expect Nifty to register new all-time in the near term. Positional support for the index is seen at 11,200, while short-term support is seen at 11,500.
BUY ITC (Rs 299)
Target: Rs 315
Stop loss: Rs 290
The stock has broken out from the downward sloping trend line on the weekly charts. Bullish Rounding bottom formation is seen on the daily charts. Previous top resistance of Rs 197.5 is taken out on closing basis.
Considering the technical evidences discussed above, we recommend buying the stock between CMP and Rs 295 for the target of Rs 315, keeping stop loss at Rs 290 on closing basis.
BUY PNB (Rs 90.4)
Target: Rs 96
Stop loss: Rs 87
The stock price has broken out from symmetrical triangle on the daily charts. Golden crossover is observed on the charts as 50-DMA surpassed 200-DMA. Bullish inverse head and shoulder breakout, indicates medium term bullish trend reversal.
Considering the technical evidences discussed above, we recommend buying the stock at CMP and average it at Rs 89, for the target of Rs 96, keeping a stop loss at Rs 87 on closing basis.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.