Market continues with downward trend with Nifty, too, having its weekly trend turning down after ten weeks, while Bank Nifty has been down since last three weeks. Almost all sectors are participating in correction, especially, the heavyweights. The Nifty50 index has 41 stocks in negative zone with weightage of almost 85 per cent while only nine stocks are in positive which confirms a corrective market. The support for the week is seen at 36,900/11,100 for Sensex and Nifty, respectively, while resistance is seen at 38,150/11,500. Bank Nifty would have a range of 28,470-29,720.
BUY HDFC LTD
CMP: Rs 1,931.70
TARGET: Rs 2,060
STOP LOSS: Rs 1,880
The stock has taken support near Rs 1,900 levels which is where the significant 200-day moving average (DMA) lies forming a double bottom formation pattern on the daily chart and has signified strength to carry the stock further upward in the coming days. The relative strength index (RSI) has indicated improvement and with the chart also looking attractive, we recommend a buy in this stock for an upside target of Rs 2,060, keeping a stop loss of Rs 1,880.
BUY INDIABULL HSG FINANCE
CMP: Rs 698.05
TARGET: Rs 780
STOP LOSS: Rs 660
The stock has corrected well from the peak of Rs 919 levels to bottom out near Rs 666 and has indicated a bounce back with a positive candle to signify strength and has potential to rise further in the coming days. The chart looks attractive with the RSI also showing a trend reversal to signal a buy. With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 780, keeping a stop loss of Rs 660.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.