Market shows no signs of a strong pull back with the daily and weekly trend being down. Among the Nifty50 stocks, 41 stocks with 90 per cent weightage are corrective and only nine stocks on positive with 10 per cent are on positive. Support for the week is seen at 38,060/11,330 for the Sensex and Nifty, respectively, while resistance is seen at 39,360//11,750. Bank Nifty, too, has its weekly trend turned down and may see further weakness now with HDFC twins, ICICI etc showing weakness. Bias continues to be corrective and cautious.
BUY HERO MOTOCO
CMP: Rs 2,569.80
TARGET: Rs 2,800
STOP LOSS: Rs 2,400
The stock witnessed a decent erosion recently and has bottomed out near Rs 2,360 levels to give a bounce back and with the relative strength index (RSI) showing a trend reversal has improved the bias. The chart looks attractive and we anticipate the stock to rise further from here on in the coming days. With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 2,800 keeping a stop loss of Rs 2,400.
BUY SUN PHARMA
CMP: Rs 407.70
TARGET: Rs 445
STOP LOSS: Rs 380
The stock recently made a double bottom formation pattern near Rs 365 levels and has recovered strongly to give almost a breakout above the previous peak level of Rs 408. The RSI has recovered strongly from the oversold zone and also indicated a trend reversal to signal a buy. With the stock moving above the 50-day moving average (DMA), the bias has improved significantly and we anticipate further upward move from these levels. With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 445 keeping a stop loss of Rs 380.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.