Nifty has held on to the 11,250 support levels, whereby market sees some consolidation. Besides, the weightage of Nifty50 stocks is still tilted more on negative side as 40 stocks are 85 per cent on negative while only 10 stocks are 15 per cent on positive. This has been since last three weeks. It is about time we saw some bounce, failing which it would be in bears' control. The support for the week is seen at 37,300/11,100 for Sensex and Nifty, respectively, while resistance is seen at 38,480/11,480. Bank Nifty would have a range of 28,740-29,930.
BUY HDFC BANK
CMP: Rs 2,277.30
TARGET: Rs 2,420
STOP LOSS: Rs 2,240
The stock has given a decent erosion recently and has bottomed out near Rs 2,245 levels and the bounce back has been strong with a positive bias. The relative strength index (RSI) has also indicated a trend reversal to signal a buy and with the chart looking attractive, we recommend a buy in this stock with an upside target of Rs 2,420 keeping a stop loss of Rs 2,240.
BUY DR REDDY'S
CMP: Rs 2,704.95
TARGET: Rs 2,900
STOP LOSS: Rs 2,575
The stock has been in consolidation for quite some time and has picked up momentum to cross above the 200-day moving average (DMA) improving the bias. The RSI also has indicated a trend reversal to signal a buy and with the chart looking promising, we recommend a buy in this stock for an upside target of Rs 2,900 keeping a stop loss of Rs 2,575.
Disclaimer: The analyst may have positions in one or all of the above mentioned stocks.