STOP LOSS: 11,370
Nifty has been forming higher tops and higher bottoms with a clear buy crossover in its momentum indicator moving average convergence divergence (MACD). The index has formed a “Doji” candlestick pattern on the daily charts which indicates indecisiveness among the market participants. On the lower side, there exists a support at 11,370, whereas the short-term target comes at 11,620.
IDFC FIRST BANK: BUY
TARGET: Rs 56.80
STOP LOSS: Rs 48.60
The stock has provided a breakout from an inverse head and shoulders pattern which is a bullish reversal pattern. The MACD is well into buy mode as well as the index has provided a breakout with an increase in volumes. It is likely to inch towards the positional target of Rs 56.80, whereas the support is pegged at Rs 48.60.
TARGET: Rs 1,275
STOP LOSS: Rs 1,135
The stock has provided a breakout from the falling channel formed in its wave 4 and now wave 5 up seems to have started. The daily as well as weekly momentum indicator has provided a buy crossover and it has started to form higher tops and higher bottoms with increase in volumes.
TVS MOTORS COMPANY: BUY
TARGET: Rs 540
STOP LOSS: Rs 475
The stock has completed 38.2 per cent retracement of the previous five waves rise. The momentum indicator MACD has also provided a clear buy crossover, hence next five wave rise on the upside is expected. Hence, we recommend buying this stock for the target of Rs 540 with a stop loss of Rs 475.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.