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5 rate sensitive stocks that look bullish on the charts post RBI policy

RBI Policy
The Reserve Bank of India (RBI) decided to keep the benchmark repo rate unchanged at 4 per cent on Thursday and the reverse repo rate at 3.35 per cent. In its outlook for the rest of the year, the RBI MPC noted that inflation was expected to remain elevated in the second quarter of 2020-21 and ease thereafter in the second half of the year. READ ABOUT IT HERE

Given the development, interest rate sensitive stocks traded in a narrow range. Realty stocks, however, bucked the trend with the Nifty Realty index rallying over 1 per cent post the development.

Here are five interest rate sensitive stocks that look good on the charts post the RBI's policy announcement.

State Bank of India (SBIN): This counter has managed to scale above 100-days moving average (DMA) with a firm upward bias. Now with a positive crossover of 50-DMA, the upside rally may see Rs 200 levels getting conquered in the next few sessions. The overall trend suggests a move towards Rs 220 levels. The underlying support remains at Rs 185 levels.  CLICK HERE FOR THE CHART

Maruti Suzuki India (MARUTI): After overcoming selling pressure above its 200-DMA, this counter is poised for a rally in the medium-term and can hit Rs 6,800 and Rs 7,000 levels. The chart structure reveals “Higher High, Higher Low” formation, which is an indication of upside in the sessions ahead. Till Rs 6,250 level is held on a closing basis, which also is near Maruti’s 200-DMA, any correction will eventually come in. CLICK HERE FOR THE CHART

DLF Ltd (DLF): The 50-DMA has become a hurdle for this counter, DLF’s daily chart suggests. However, the underlying strength and the support from Moving Average Convergence Divergence (MACD) suggests a possible upside. A big breakout is expected above Rs 150 - a level when that should see a positive crossover of 50-DMA and 100-DMA. Support on a closing basis stands at Rs 138 levels. CLICK HERE FOR THE CHART

Bajaj Auto Ltd (BAJAJ-AUTO): A mild profit booking was seen when Relative Strength Index (RSI) entered the overbought territory, as per the daily chart. The broad trend remains positive as 50-DMA has formed a “Golden Cross” with 200-DMA. This scenario suggests a bigger upside above Rs 3,100 levels. That said, the stock is witnessing a mild pressure, which should eventually witness buying coming in around the 50-DMA at Rs 2,875 levels. The stock could hit Rs 3,250 levels in the sessions ahead, charts suggest. CLICK HERE FOR THE CHART

Axis Bank Ltd (AXISBANK): When this counter crossed its 100-DMA, it started taking moving average support and moved happily along with it. Although, there is a gap down in the range Rs 456 – Rs 459, the counter is holding the 100-DMA support for now. With the 50-DMA making a positive crossover, the stock should see an up move and may see strong buying in the range of Rs 424 to Rs 414 levels. It can hit Rs 460 levels in the days ahead. CLICK HERE FOR THE CHART



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