Nifty has maintained above the 200DMA level for the second day and has maintained the positive bias. As said earlier, a bounce back to 10300-10330 levels cannot be ruled out and as of now 9950 for Nifty would act as the major support. The support for the day is seen at 10190 while resistance is seen at 10300. Auto stocks have indicated signs of improvement and we anticipate a further rise from here on.
BUY JINDAL STEEL & POWER
CMP: Rs 229.40
TARGET: Rs 265
STOP LOSS: Rs 215
The stock has been consolidating for quite some time at around 220-225 levels and has currently is indicating a positive bias with the RSI on the rise reversing from the oversold zone. The MACD also has shown a trend reversal to improve the sentiment and with consistent volume activity seen, we recommend a buy in this stock for an upside target of 265 keeping a stop loss of 215.
BUY CENTURY TEXTILES
CMP: Rs 1,198.95
TARGET: Rs 1,295
STOP LOSS: Rs 1,150
The stock has decently corrected in the recent past from the peak of 1471 to bottom out at 1103 levels and has indicated a good recovery to improve the bias. The stock has maintained a good support at around 1110 – 1120 and has almost formed a double bottom formation in the daily chart. The RSI has shown a trend reversal and has signaled a buy. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 1295 keeping a stop loss of 1150.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.