Nifty is at a crucial juncture wherein, as of now, it has taken support near the trendline support of around 10,650 levels which if broken can retest the next major support zone which would be around 10,550-10,580 levels whereas on the upside only a breach above 10,980-11,000 can confirm a further upward movement. However, the support for the week is seen at 35,950/10,580 for Sensex and Nifty, respectively while resistance is seen at 37,350/11,040. Bank Nifty would have a weekly range of 26,200-27,600.
BUY MAHINDRA & MAHINDRA
CMP: Rs 533.25
TARGET: Rs 590
STOP LOSS: Rs 505
The stock has corrected sharply recently from the levels of Rs 675 and has consolidated near Rs 520, taking support at Rs 505 levels, maintaining a good base. Currently, a bullish engulfing candle has signified a positive bias and along with the relative strength index (RSI) indicating a trend reversal has made the stock look attractive and we recommend a buy in this stock for an upside target of Rs 590, keeping a stop loss of Rs 505.
BUY AMARA RAJA BATTERIES
CMP: Rs 616.60
TARGET: Rs 670
STOP LOSS : Rs 580
The stock has almost made a double bottom formation pattern on the daily chart maintaining a good base near Rs 580 levels and with the RSI indicating a trend reversal from almost the oversold zone, the bias has turned positive. The chart looks promising and with good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 670, keeping a stop loss of Rs 580.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.