NIFTY VIEW
After a brief consolidation and Nifty holding on to a crucial support of 11,550, the market witnessed a good bounce and moved past the near-term resistance of 11,650 to close above 11,700. We may witness further short covering and perhaps buying and participation once again from almost all sectors. IT continues to be in the green. The support for the day is seen at 38,760/11,660 for the S&P BSE Sensex and Nifty, respectively, while resistance is seen at 39,350/11,790. Bank Nifty would have a range of 29,560-30,180.
BUY HDFC
CMP: Rs 1,980.40
TARGET: Rs 2,120
STOP LOSS: Rs 1,910
The stock has more or less formed a higher bottom formation on the daily chart and has produced a positive candle to signify strength and has the potential to carry on the momentum in the coming days. The relative strength index (RSI) has indicated a trend reversal to signal a buy and has improved the bias. With the volume participation looking strong, we recommend a buy in this stock for an upside target of Rs 2,120, keeping a stop loss of Rs 1,910.
BUY ARVIND LTD
CMP: Rs 88.30
TARGET: Rs 97
STOP LOSS: Rs 84
The stock has maintained the support base near Rs 84 levels which is also where the 50-day moving average (DMA) lies and has indicated a bounce back to signify strength and has improved the bias to anticipate further upside movement in the coming days. The RSI has indicated a trend reversal to signal a buy and with good volume activity witnessed, we recommend a buy in this stock for an upside target of Rs 97, keeping a stop loss of Rs 84.
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Disclaimer: The analyst may have positions in any or all the stocks mentioned above.