By Shrikant Chouhan
On Tuesday, the benchmark indices witnessed range bound activity, Nifty ended 20 points higher while the Sensex was up by 62 points. Among sectors, PSU Banks continued positive momentum for the second day in a row whereas media and selective financial stocks registered intraday profit booking at higher levels. Technically, after a sharp bounce back the market witnessed range bound activity.
Stock Recommendations
Federal Bank
BUY | CMP: Rs 133.25 | TARGET: Rs 140 | SL: Rs 129
For the last few weeks, the counter was stuck in a range bound movement and presently we witnessed a range breakout on the daily scale. Moreover, the closing above its resistance zone suggests that the counter has good potential for further upside in the near future.
Eicher Motors
BUY | CMP: Rs 3229.05 | TARGET: Rs 3390 | SL: Rs 3160
After hitting the recent highs of around 3300, the stock witnessed selloff and dropped to the lower side. However, it has found support near the important retracement zone. As a result, the bullish trend is very likely to continue for further up move in the near term.
Tata Steel
BUY | CMP: Rs 106.95 | TARGET: Rs 112 | SL: Rs 104
The counter is trading in a range bound mode with decent volume activity near its demand zone. The formation suggests that the stock is into the accumulation phase. Furthermore, the closing above its short term moving average is indicating a strong reversal from the current levels in the coming horizon.
GNFC
BUY | CMP: Rs 530.85 | TARGET: Rs 560 | SL: Rs 520
The stock had witnessed a downward movement over the past few weeks. However, on the daily scale it has found support around its important retracement zone. As a result, the bullish momentum from the current levels is very likely for fresh up move in the coming sessions.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Views expressed are author’s own. Please consult your financial advisor before investing.)