Nifty on Tuesday closed at the highest level since June 13, 2019, surpassing the resistance of 11,911 during intraday trade. The index is placed above all important moving average parameters, indicating bullish trend on all time frames. The immediate resistance for Nifty is seen at 12,000, followed by 12,430 while the support has now shifted to 11,775.
BUY SBIN (Rs 365)
Target: Rs 400
Stop loss: Rs 340
The stock has broken out from the last 10 quarters price consolidation. Recently, it has registered new all-time high. It has surpassed the crucial double top resistance of Rs 351.50 and has been sustaining above it. Moving average and oscillator setup is bullish on medium to long term charts.
Considering the technical evidence discussed above, we recommend buying the stock at CMP, for the target of Rs 340, keeping a stop loss at Rs 400 on closing basis.
BUY FEDERAL BANK (Rs 108)
Target Rs 120
Stop loss: Rs 103
The stock is trading at its 52-week high. Recently, it registered bullish “Flag” pattern breakout on the daily charts. Higher tops and higher bottoms are seen on the weekly charts. It is trading above all important moving average parameters.
Considering the technical evidence discussed above, we recommend buying the stock at CMP, for the target of Rs 120, keeping a stop loss at Rs 103 on closing basis.
The author is a research analyst working with HDFC Securities. Views expressed are his own.