The Nifty has given a strong recovery during the week, bottoming out near 11,830 levels. With a close above 12,000 levels, Nifty gets its weekly trend turned up. Also, the RSI at 63 levels brings in strength for further upmove. However, the support for the week is seen at 40,370 while the resistance is seen at 41,630 for the Sensex. The weightage among Nifty50 stocks is still tilted more on corrective. Bank Nifty would have a range of 31,370-32,650. Auto and Capital goods look favorable from here on along with Cement sector.
The stock has witnessed a decent correction from the peak of 621 levels and has bottomed out near 500 levels where there is a strong support. The stock is indicating a bounceback with positive bias. The RSI also has shown a trend reversal from the highly oversold zone and has signaled a buy for further upside levels to attain in the coming days. We suggest to buy this stock for an upside target of Rs 590 keeping a stop loss of Rs 490.
BUY HDFC AMC | CMP: Rs 3,126 | TARGET: Rs 3,700 - 3,800 | STOP LOSS: Rs 2,850
The stock has corrected well from the recent high level of 3,844 and has currently bottomed out near 2,830 levels making a higher bottom formation pattern in the daily chart to imply strength and potential to rise further in the coming days. The chart looks attractive with also the RSI indicator showing a trend reversal signaling a buy. We suggest to buy and accumulate this stock for an upside target of Rs 3,600-3,750 keeping a stop loss of Rs 2,850.