Nifty and Bank Nifty has entered a new territory breaching the resistance band and is now at their peak levels. The bias has turned positive but the chances of a small correction cannot be ruled out. However, the support for the week is seen 11070 while resistance is seen at 11430. The Infra and Metal sector has bounced back strongly and has improved the bias and one can go for L&T for initiating a buy.
CMP: Rs 244.95
TARGET: Rs 270
STOP LOSS: Rs 230
The stock has given a good bounce from the bottom made at around 215 levels and currently has moved past the significant 200 DMA moving average to show strength for a further upward rally and with the RSI also on the rise indicating a trend reversal the bias has become further strong and positive. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 270 keeping a stop loss of 230.
BUY MOTHERSON SUMI
CMP: Rs 318.70
TARGET: Rs 342
STOP LOSS: Rs 304
The stock has given a good rally from the bottom made near 280 levels and currently, a breakout has been maintained moving above the previous consolidation levels of 310-314 signifying strength and has the potential to rise further with a positive bias. The RSI has been strong which is on the rise and also the MACD has recently turned its trend to positive. With volume participation increasing in recent times, we recommend a buy in this stock for an upside target of 342 keeping a stop loss of 304 levels.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.