Nifty has bounced back strongly from the base made near 10,585 gaining almost 8 per cent and currently at 11,630 levels, it is in an overbought zone from where the chances of a small correction or consolidation cannot be ruled out. Bank Nifty, too, which has gained a mammoth 14 per cent during the month is near 30450 levels and has got a similar view like Nifty and one need to be cautious. The bias is maintained positive, however, the support for the week would be seen at 37,980/11,400 levels for Sensex and Nifty while the resistance would be at 39,200/11,800 levels.
BUY HIND UNILEVER
CMP: Rs 1,706.80
TARGET: Rs 1,850
STOP LOSS: Rs 1,660
The stock has witnessed a gradual erosion in the past three months and currently has produced a positive candle after consolidating for quite some time at around Rs 1,670 levels, maintaining a support base. It has moved past the significant 200-day moving average (DMA) and we anticipate an upmove from here on to scale till Rs 1,800 – Rs 1,850 levels. The RSI has also indicated a trend reversal from the oversold zone and has signaled a buy. With good consistent volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 1,850, keeping a stop loss of Rs 1,660.
BUY IRB INFRA
CMP: Rs 144.85
TARGET: Rs 165
STOP LOSS: Rs 136
The stock has made a higher bottom formation pattern on the daily chart taking support at the significant 50-DMA which lies at Rs 138 levels and has indicated an upward movement to maintain a positive bias. The chart looks attractive with the RSI also showing a trend reversal to signal a buy. Wigh good decent volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 165 keeping a stop loss of Rs 136.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.