NIFTY VIEW

Nifty broke the significant support of 11,400 levels on Monday weakening the bias. Some consolidation, however, was witnessed near 11,300 levels. The support for the day is seen at 37,730/11,270 while resistance is seen at 38,330/11,400. Bank Nifty would have the daily range of 28,950 - 29,600. IT Index along with Pharma, Metals & RIL have shown strength to hold Nifty. Bank Nifty too, after correcting by 1000 points, after a break of 30,250, shows a halt. Signs of pullback from here on cannot be ruled out for a while.

Stock recommendation:

RELIANCE INDUSTRIES

Recommendation: BUY

CMP: Rs 1280.50

TARGET: Rs 1385

STOP LOSS: Rs 1220

The stock has made a double bottom formation near 1225 levels. After taking support near the significant 200DMA moving average, which lies near 1228 level, has bounced back to improve the bias. It has potential to rise further and with the RSI also indicating a trend reversal has signaled a buy. With the chart looking promising and good for further upside move, we recommend a buy in this stock for an upside target of Rs 1385 keeping a stop loss of Rs 1220.

HINDALCO

Recommendation: BUY

CMP: Rs 202.40

TARGET: Rs 218

STOP LOSS: Rs 193

The stock has maintained a good base near 190 levels. With a positive candle pattern moving above the significant 50DMA moving average, it has improved the bias and has the strength to carry on the momentum further upside in the near future. The RSI trend has turned positive signaling a buy and hence we recommend a buy in this stock for an upside target of Rs 218 keeping a stop loss of Rs 193.

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Disclaimer: The analyst may have positions in one or all of the above mentioned stocks.