Within two days, the Nifty50 index has surged 2.4 per cent, while Bank Nifty has rallied 2.46 per cent. Bank Nifty, for now, would see some profit-booking while the benchmark index Nifty has its resistance at 11,450 levels. Pharma has got momentum. The support for the day is seen at 37,240/11,220 for Sensex and Nifty, respectively, while resistance is seen at 37,820/11,370 levels. Bank Nifty would have a range of 28,140-28,740 levels. IndusInd Bank and Kotak Mahindra Bank look positive from here on.
BUY Hindustan Unilever
CMP: Rs 1,734.80
TARGET: Rs 1,850
STOP LOSS: Rs 1,675
The stock has witnessed a decent price erosion in recent times and now has taken support at the 200-day moving average (DMA) which lies at Rs 1,695 levels and has indicated a bounce back with a positive bullish candle formation pattern on the daily chart. The chart looks very attractive and implies further strength and potential to rise in the coming days, maintaining a positive bias. With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 1,850 keeping a stop loss of Rs 1,675.
BUY Torrent Pharma
CMP: Rs 1,841.90
TARGET: Rs 1,960
STOP LOSS: Rs 1,760
The stock has maintained a strong base around Rs 1,750 levels and has currently indicated a bullish candle to signify strength. It has moved past the significant 50-day moving average (DMA) to improve the bias. The relative strength index (RSI) also has made a steep rise with a trend reversal to signal a buy and with good volume activity witnessed, we recommend a buy in this stock for an upside target of Rs 1,960 keeping a stop loss of Rs 1,760.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.