Nifty has got its daily trend turned up after 3 days, while weekly and monthly continue to be down. Nifty for now has taken support of 10,750 to attempt for an inverted head & shoulder pattern. The support for the week is seen at 36,320/10,730 while resistance is seen at 37,600/11,150. Bank Nifty would have a range of 26,580-27,870. HDFC Bank looks promising from here on along with Axis. Metal and Auto sector too have shown signs of bounce back.
BUY BAJAJ AUTO
CMP: Rs 2,839.35
TARGET: Rs 3,100
STOP LOSS: Rs 2,720
The stock has been consolidating near the 2,780 levels for quite some time and currently has indicated a breakout above the range and also above the significant 200DMA to signify strength and has potential to rise further in the coming days. The RSI has turned positive and with also with favourable indicators supporting our view, we recommend a buy in this stock for an upside target of Rs 3,100 keeping a stop loss of Rs 2,720.
Disclainer: The views expressed are the author's own. The analyst may have positions in one or all of the above mentioned stocks.