Nifty has held on to 11,900 levels with daily trend still being down, market seems to be consolidating or moving in a narrow range for now. The support for the day is seen at 39,500/11,850 for Sensex and Nifty, respectively, while resistance is seen at 40,080/12,000. IT sector along with FMCG are in positive, Britannia, Nestle, HUL and ITC are stocks with positive bias. Bank Nifty would have a range of 30,730-31,330.
BUY MOTHERSON SUMI
CMP: Rs 119.05
TARGET: Rs 140
STOP LOSS: Rs 110
The stock has been in consolidation for quite some time maintaining a good base at around Rs 112 levels. Currently, it has given a positive candle to signify strength and has potential to rise further in the coming days. The relative strength index (RSI) has also indicated a trend reversal and has signaled a buy to maintain the positive bias. With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 140 keeping a stop loss of Rs 110.
BUY CADILA HEALTH
CMP: Rs 247.60
TARGET: Rs 280
STOP LOSS: Rs 235
The stock has witnessed a decent correction in recent times and currently has formed a double-bottom formation pattern on the daily chart to signify a good base near Rs 240 levels and it has the potential to rise further from this zone. The RSI has alos recovered from the oversold zone to indicate a trend reversal and signal a buy. With good volume activity seen and favourable indicators, we recommend a buy in this stock for an upside target of Rs 280 keeping a stop loss of Rs 235.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.