Nifty continues to have its weekly trend up while Bank Nifty has failed to show weekly reversal. The bias once again turns positive. Also, with the onset of the result season, we anticipate volatile movements. The support for the week is seen at 40,960/12,050 while resistance is seen at 42,200/12,450. Bank Nifty would have a range of 31,750-32,700. Auto, FMCG, Pharma, look positive and are showing potential for further upside. Mid Cap sector too looks positive. Weightage among Nifty50 stocks is equally distributed.
BUY HINDUSTAN UNILEVER | CMP: Rs 1,954 | TARGET: Rs 2,100 | STOP LOSS: 1,900
The stock has witnessed a decent correction from the peak of 2,190 levels and recently has maintained a good base near 1,900 levels, indicating a strong support zone. It has also given a bounce-back with a positive candle pattern. The RSI also has recovered strongly from the oversold zone to signal a buy. We suggest to buy and accumulate this stock for an upside target of Rs 2,100 keeping the stop loss of Rs 1,900.
BUY MAHINDRA & MAHINDRA | CMP: Rs 546.60 | TARGET: Rs 590-600 | STOP LOSS: Rs 520
The stock has maintained a good base near 500 levels and made a higher bottom formation, indicating a trend reversal with positive bias to imply strength and the potential to rise further in the coming days. The RSI also has indicated a positive reversal to see strength in the stock. We suggest to buy and accumulate this stock for an upside target of Rs 590-600 keeping the stop loss near 520 levels.