Stock Tips: Bullish trend is visible in the market. Nifty50 had crossed the resistance level of 16590 on Tuesday and closed above it, which is a positive sign for the market. Technically speaking, the market is showing further bullish signs and as long as Nifty trades around the 10-day SMA or 16500, the Nifty will remain in an uptrend wave till the level of 16700-16750. Talking on the flip side, the uptrend wave will weaken if it goes below 16500.
The boom that is visible in the market is getting support from IT, FMCG and financial stocks. In the near term, large cap FMCG and financial stocks may outperform, so if there is a short term correction in these stocks, then it should be seen as a buying opportunity and add quality FMCG and financial stocks to your portfolio for the medium term. Stocks should be added.
Jhunjhunwala Portfolio: Rakesh Jhunjhunwala bought shares of Canara Bank, here is the opinion of experts for investors
BUY, CMP: Rs 632.50, TARGET: Rs 662, SL: Rs 617
This stock is showing tremendous bullish trend on the daily and weekly charts. The stock is continuously showing signs of breakout on the chart. The level of Rs 617 will be the main support level for this trend and after that it is showing signs of going up to Rs 662 i.e. investors have a better chance of making profits.
Reliance Industries Ltd (RIL)
BUY, CMP: Rs 2,178, TARGET: Rs 2,265, SL: Rs 2,135
Reliance is getting support near the 50-day Simple Moving Average (SMA). A strong reverse formation is forming in its daily chart, which is indicating a rally in the current price levels. The 10-day SMA or Rs 2135 will be the new support level for positional traders. After this, the stock movement may reverse after the level of Rs 2265.
BUY, CMP: Rs 3,717, TARGET: Rs 4,865, SL: Rs 3,640
Bajaj Auto has been correcting since the last few months and currently the stock is trading close to the 200 days SMA. The oversold position of this stock indicates that it may move up from the current levels. The 200 days SMA will act as a major support zone and if it manages to cross the Rs 3640 level, it will continue to bounce back.
State Bank of India (SBI)
BUY, CMP: Rs 417, TARGET: Rs 438, SL: Rs 408
In this month, the price of SBI has fallen by more than 5 percent. After a short term correction, the stock has now formed a hammer and a bullish candle. This is positive for SBI. Currently, the stock is trading at its former support level and momentum indicators are indicating that if it crosses the level of Rs 408, then it will continue to rally further.
(Article: Shrikant Chauhan, Executive Vice President, Equity Technical Research, Kotak Securities)
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)