Market continues to hold its level with stock-specific movement. VIX continues to be high, though lower than all-time high, which brings in lot of choppiness in stocks. Midcap sector continues to underperform. Support for the day is seen at 38,700/11,650 for Sensex and Nifty, respectively while resistance is seen at 39,270/11,800. Bank Nifty
would have a range of 29,400/30,000. Sector wise, Energy and metal look comparatively positive while IT sector now witnesses fatigue at higher levels. Bank Nifty
shows only stock-specific move, keeping the sector well within its range.
CMP: Rs 586.45
TARGET: Rs 650
STOP LOSS: Rs 550
The stock has witnessed a higher bottom formation pattern on the daily chart taking support near the significant 50-day moving average (DMA) which lies near Rs 560 levels and currently has indicated a positive upward movement to improve the bias for more upside targets. The relative strength index (RSI) has indicated a trend reversal to signal a buy and with good volume activity witnessed, we recommend a buy in this stock for an upside target of Rs 650, keeping a stop loss of Rs 550.
BUY ASHOK LEYLAND
CMP: Rs 89.55
TARGET: Rs 97
STOP LOSS: Rs 85
The stock has, more or less, made a triple bottom formation at near Rs 85 levels and has given a bounce back with a positive bullish candle on the daily chart to signify strength. It has the potential to rise further in the coming days. The indicators have been favourable and with the RSI showing a trend reversal, the bias has turned positive. With good volume activity seen, we recommend a buy in this stock for an upside target of Rs 97, keeping a stop loss of Rs 85.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.