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Should you buy Divi's Lab, SBI Life before they enter Nifty50 in September?

Markets
Bharti Infratel and Zee Entertainment will make way for SBI Life Insurance and Divi's Laboratories in the benchmark index Nifty 50 from September 25, NSE Indices, a subsidiary of the National Stock Exchange, said on Thursday. 

Changes have been made in several indices, including Nifty 500, Nifty 200, Nifty 100, Nifty Midcap 150, Nifty Midcap 100, Nifty Midcap 50, Nifty Smallcap 250, Nifty Smallcap 100 and Nifty Smallcap 50 and host of sectoral indices like energy, MNC commodities and services sector. READ MORE HERE

Here's how the stocks that will be rejigged in the Nifty50 index look on the charts.

Bharti Infratel Ltd (INFRATEL): The stock is trading within the 50-days moving average (DMA) and 100-DMA. On the higher side, Rs 206.50 becomes a resistance and on the downside, Rs 197 stays as the support. A move outside this range may decide the next course. The volumes have remained subdued since the past few sessions. A breakout in price on either side may also trigger an uptick in volumes.  CLICK HERE FOR THE CHART

 

Zee Entertainment Enterprises Ltd (ZEEL): The counter faces a resistance of 200-DMA placed at Rs 211, as per the daily chart. As Relative Strength Index (RSI) has entered the overbought zone, which has punctured the upward momentum. The overall trend has a closing basis support of Rs 180. The volumes have seen enormous jump in last two sessions, which indicate that the stocks should sustain at the current levels and can moe up in the short term. CLICK HERE FOR THE CHART

Divi's Laboratories Ltd (DIVISLAB): The stock has been on an uptrend and scaled fresh all-time high lately. The current price movement suggests a mild consolidation at the current levels with the overall price setup reflecting an upside bias. The medium-term trend is highly bullish as the price has not shown any weakness despite the RSI being an overbought. The support is at Rs 3,200. The counter can scale up to Rs 3,350 and Rs 3,420 levels in the days ahead. CLICK HERE FOR THE CHART

 

SBI Life Insurance Company Limited (SBILIFE): The counter is hovering around its 200-days moving average (DMA), with a support of 50-DMA located at Rs 840 levels. The upside breakout level is at Rs 885. Once that gets conquered with substantial volumes, SBI Life should scale up to Rs 920 and then Rs 945 levels. The RSI has made an 'Inverse Head and Shoulder' pattern, which is an indication of strength and a possible upside in the counter. The support is at Rs 860 levels. CLICK HERE FOR THE CHART



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