Market continues to be rangebound and doesn't seem clear about the direction; so, technically, Nifty needs to take support and hold on to 10,850 levels to expect a rise to 11,200-11,300 levels. Else, a break of 10,850 brings in further slide. This being a truncated week market would have a weekly range of 36,580/10,780 for Sensex and Nifty, respectively, while resistance would be at 37,940/11,220. Bank Nifty would have a range of 26,650-28,050 levels. Metal stocks look attractive at these levels.
BUY TATA CHEM
CMP: Rs 584.30
TARGET: Rs 640
STOP LOSS: Rs 545
The stock has formed a double bottom formation pattern on the daily chart at around Rs 545 levels and has given a decent bounce back to improve the bias and has the potential to rise further in the coming days owing to favorable indicators. The relative strength index (RSI) has also indicated a trend reversal from the oversold zone and is on the rise and with good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 640, keeping a stop loss of Rs 545.
CMP: Rs 144.25
TARGET: Rs 165
STOP LOSS: Rs 134
The stock has almost made a higher bottom formation pattern on the daily chart, maintaining above the significant 200- day moving average (DMA) which lies near Rs 135 levels to imply strength and potential to rise further. The base has been maintained strong near Rs 130 levels which forms a double-bottom pattern. With good volume activity seen, we recommend a buy in this stock for an upside target of Rs 165, keeping a stop loss of Rs 134.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.