Nifty is oscillating between 10,400-10,600 levels with the daily & weekly trend continuing to be down since past 10 days and 2 weeks. The support for the day is seen at 10,480 while resistance is seen at 10,600. Selective Pharma stocks look positive to bounce from their crucial support levels & also Gas stocks like MGL & IGL look positive from here on.
CMP: Rs 161.65
The stock has corrected from the recent peak of Rs 197 to bottom out at Rs 152 to Rs 155 levels and is now ready for an upward move with a positive bias. The chart looks promising and with much erosion from the peak of Rs 231, we anticipate the stock to scale till Rs 182 levels. The indicators are also favourable and with the RSI indicating a trend reversal with a buy signal, we recommend a buy in this stock for upside target of Rs 182 keeping a stop loss of Rs 152.
The stock has taken support at around Rs 140 levels making a double bottom formation in the daily chart and a good recovery from thereon suggests a positive bias maintained and indicate strength and potential to rise further in the coming days. The RSI has hit the oversold zone and has made a revival to signal a buy and also with other favourable factors, we recommend a buy in this stock for an upside target of Rs 167 keeping a stop loss of Rs 146.
BUY MAHANAGAR GAS LTD
The stock has witnessed a short correction from the consolidation range of around Rs 1,100 and has now bottom out at Rs 916 levels to signify a turnaround and we anticipate the stock to scale till Rs 1,060 levels. The chart looks attractive and with favourable indicators with a positive bias, there is strength and potential maintained and further improvement can be expected in the coming days. With good volume participation witnessed, we recommend a buy in this stock for an upside target of rs 1,120 keeping a stop loss of Rs 970.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.