The erosion continues amidst all the choppiness with large-cap now getting in corrective move. The moving average convergence divergence (MACD), along with relative strength index (RSI) and mean deviation indicator (MDI) all show a downward move. Nifty is now struggling to sustain 10,600 levels. Support for the day is seen at 35,070/10,530 for Sensex and Nifty, respectively, while resistance is seen at 35,630/10,660. Bank Nifty would have a range of 26,400-26,950. IT sector, too, after making a double-top on daily has got into profit-booking.
BUY STERLITE TECH
CMP: Rs 232.20
TARGET: Rs 260
STOP LOSS: Rs 200
The stock has made a decent correction from Rs 300 levels and has consolidated at around Rs 210 levels for quite some time which is also a very good support. It is getting into momentum and with favourable indicators and relative strength index (RSI) on the rise, we recommend a buy in this stock for an upside target of Rs 260, keeping a stop loss of Rs 200.
CMP: Rs 124.75
TARGET: Rs 150
STOP LOSS: Rs 115
The stock has been in consolidation phase for quite some time and has taken support near Rs 115 levels on several occasions and with a bullish candle formation now, the stock looks attractive for a move in the upward direction. The RSI also has turned positive reversing its trend and with decent volume participation, we recommend a buy in this stock for an upside target of Rs 150 keeping a stop loss of Rs 115.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.