Nifty, which recovered strongly from the 50-day moving average (DMA) level of 11,090 levels has decisively crossed the 11,600-mark and has entered a new zone for further upside targets of 11,950-12,000 levels. Bank Nifty has underperformed as compared to the Nifty index but is still in a positive zone above the 200-DMA of 28,860 level. However, the support for the week is seen at 38,600/11,440, while the resistance is seen at 40,000/11,900 levels. Bank Nifty would have the daily range of 28,440-29,950 levels.
BUY LARSEN TOUBRO
CMP: Rs 1,447.80
TARGET: Rs 1,580
STOP LOSS: Rs 1,390
The stock has indicated a higher bottom formation pattern on the daily chart, taking support near the 200-DMA level of Rs 1,390 and has improved the bias with a pullback to show strength and has potential to rise further upside in the coming days. The relative strength index (RSI) has been maintained positive and with decent volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 1,580 levels, keeping the stop loss at Rs 1,390.
CMP: Rs 689.60
TARGET: Rs 740
STOP LOSS: Rs 660
The stock has taken support at the ascending trendline at Rs 650 levels and has picked up momentum with positive bias to imply strength and anticipate further rise in the stock. The RSI also indicates a trend reversal to signal a buy and with favourable indicators supporting our view, we recommend a buy in this stock for an upside target of Rs 740, keeping a stop loss of Rs 660.
Disclaimer: Views expressed are the author's own. She may have positions in one or all of the above mentioned stocks.