Stock Recommendations

NIFTY (8517) CNX Nifty opened positive but failed to hold the higher levels and no major surprise from RBI’s policy dragged the index towards the intraday low of 8448 levels. However, buying interest at lower levels supported the index to recoup the losses partially as it regained its 8500 levels in the last hour of trade. Finally, the volatile day ended with the loss of around 26 points. Now it has to hold above 8500 zones to witness buying interest towards 8550 and 8565 levels. While holding below 8480 may attract for a profit decline towards 8440 zones. Traders are required to remain cautious ahead of 1st quarterly result, Manufacturing PMI and Service PMI.

SENSEX (28072) BSE Sensex opened positive but fell down towards 27866 levels post RBI’s declaration of keeping key rate unchanged. Although, it regained its psychological 28000 levels in the last hour of the day trade but still the session ended with the loss of around 115 points. Now, the index needs to cross and hold above 28150 levels for the bulls to take the index towards 28300 and 28500 levels. However if it fails to hold its psychological 28000 then bears may drag the index towards 27800 and 27500 levels. 

Technical Calls

ESSEL PROPACK has registered fresh lifetime high of 162 and also gave highest daily close in its trading history. It has been making higher top - higher bottom formation on daily and weekly chart and holding above 160 may continue fresh round of rally towards 167 and 175 levels. We are recommending to buy the stock between Rs.156 to 158 with the stop loss of Rs.152 levels for the upside target of Rs.167 levels. 

RECLTD has taken multiple support near to 267-268 zone and also made a double bottom pattern on daily chart. It looks attractive in terms of risk reward ratio and also managed to cross and close above its immediate hurdle of 279 zones. We are recommending to buy the stock between Rs.274 to 277 with the stop loss of 269 levels for the upside target of 288 levels. 

M&M, after giving breakout around level of Rs.1,250 has moved into the new channel formation with strong support around level of Rs.1,300 and resistance at Rs.1,420 (also coincides with an all time high). Both MACD and RSI are suggesting of continuation of current uptrend. 

The concern comes from overbought nature of Stochastic, which has just moved into the overbought zone. Thus, any stock price correction in the short term would provide investor to enter the stock with probable move towards higher level. Stock however, should maintain its close above 50 day exponential moving average (currently placed around level of ~Rs.1,290)

Thus, for today’s trade, long position can be initiated only in Rs.1,330-1,310 range for target of Rs.1,420 with a stop loss of Rs.1,290.