Market at crucial support levels bringing panic to bulls as a break of 11,540 calls for a further corrective view to 11,300. Bank Nifty has already eroded over 1,000 points in last three days. Support for the day is seen at 38,270/11,500 for Sensex and Nifty, respectively, while resistance is seen at 38,850/11,630. Bank Nifty would have a range of 29,160-29,780. IT sector is still holding well with some momentum seen in pharma sector. Sun Pharma looks promising from here on. VIX also continues to be high, cautious view.
CMP: Rs 728.20
TARGET: Rs 760
STOP LOSS: Rs 710
The stock has made a double-bottom formation pattern at around Rs 710 levels on the daily chart and has indicated a positive candle to signify strength and has potential to rise further in the coming days. The relative strength index (RSI) has indicated a trend reversal to signal a buy and has improved the bias. We recommend a buy in this stock for an upside target of Rs 760, keeping a stop loss of Rs 710.
BUY SUN PHARMA
CMP: Rs 468.55
TARGET: Rs 500
STOP LOSS: Rs 450
The stock has been consolidating for quite some time maintaining a good base near Rs 450 levels and currently a bullish candle has indicated a positive trigger to imply upward movement in the coming days. The bias has been positive with a trend reversal in the RSI to signal a buy. With good consistent volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 500 keeping a stop loss of Rs 450.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.