Nifty has witnessed a decent bounce back from the support zone of 10,600 and, as of now, is facing some resistance near 10,800 level which when breached would further proceed towards 10,860 levels. However, the support for the week is seen at 35,180/10,570 for Sensex and Nifty, respectively, while resistance is seen at 36,500/11,000. Bank Nifty would have a range of 26,170-27,530. We would maintain a positive view in Auto and IT stocks which have recovered strongly with a positive bias. Watch for Maruti, Hero Moto, M&M, TCS and Infosys.
BUY HERO HONDA
CMP: Rs 2,679.85
TARGET : Rs 2,950
STOPLOSS : Rs 2,560
The stock has witnessed a decent erosion recently from the peak of Rs 2,960 and has bottomed out at around Rs 2,580 levels to make a more or less double bottom formation pattern in the daily chart. Currently, the positive bullish candle formation has made the chart look very attractive and has improved the bias and we anticipate a good run from here on. The RSI showing a trend reversal from the oversold zone has signaled a buy and with good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 2,950 keeping a stop loss of Rs 2,560.
BUY JSW STEEL
CMP : Rs 285.85
TARGET : Rs 330
STOPLOSS : Rs 260
The stock has eroded much of its gain in the past 4 to 5 months from the peak of Rs 427 and recently has shown signs of bottoming out at around Rs 255 levels and currently with a bounce back movement has made the chart look very promising for further upward movement. The RSI has slowly started rising to maintain a positive bias and with good consistent volume activity seen, we recommend a buy in this stock for an upside target of Rs 330, keeping a stop loss of Rs 260.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.