Nifty still has its monthly trend intact while Bank Nifty has its monthly trend down too. Post budget, among Nifty 50 stocks weightage is tilted on negative with only 10 stocks in positive having 16 per cent weightage implying a very weak bias. Support for the week is seen at 39,050/11,440 while resistance is seen at 40,460/11,900. Bank Nifty would have a range of 29,150-30,550. The bias remains corrective and cautious. It is, however, also time to cherry-pick good stocks like SBI, Maruti, Tata Steel, FMCG, etc to accumulate.
BUY SBI | CMP: Rs 302.60 | TARGET: Rs 340 | STOP LOSS: Rs 292
The stock has witnessed a slight correction but has maintained the significant support zone of 300 and we anticipate a bounce back from here on to regain strength. The volume participation no doubt is decent and with the RSI in the slight oversold zone should recover and maintain a positive bias in the coming days. We suggest to buy and accumulate this stock for an upside target of Rs 340, keeping the stop loss of Rs 292.
BUY HINDUSTAN UNILEVER | CMP: Rs 2,074.90 | TARGET: Rs 2,200 | STOP LOSS: Rs 2,020
The stock has been consolidating for quite some time and has been maintaining a good support level of 2030 levels and currently with a positive candle indication the bias has turned positive and we anticipate an upward move in the coming days. The RSI has indicated a trend reversal to signal a buy and we suggest to buy this stock for an upside target of Rs 2,200, keeping the stop loss of Rs 2,020.
Disclaimer: The author may have positions in one or all of the above mentioned stocks. Views expressed are personal.