Nifty (CMP: 11301)
Last few sessions witnessed continuous buying as Nifty broke off from its 6 month’s consolidation, thanks to the pre-election rally. Both primary & intermediate trends are now bullish & we should therefore now approach the market as one to buy on declines; supports exist at 11100, 10970 & 10884 regions. The outlook for next week therefore remains positive although some short term pull back could take place but we are not expecting the supports as mentioned above to be breached easily.
(Buy) Bajaj Finance (CMP: 2753)
Bajaj Finance has recently seen some consolidation followed by pull-back and resumption of primary uptrend. The stock is in a bull’s grip for a significant period of time & also outperforming the index, thus qualifying for buying. Support exists at 2700 & 2660 regions and this might be a good opportunity to go long in this NBFC stock.
(Buy) Reliance Inds (CMP: 1331)
Reliance Industries has completed its consolidation phase & made new life high this week. This energy major is continuing to show promise in terms of holding on to its longer term uptrend. CNX Energy index and especially Reliance Inds is in fact outperforming many stocks within Nifty in intermediate term. One may therefore initiate a long position in it on pull back to 1310 regions with stop loss at 1284 & target 1355.
(Buy) Inox Leisure (CMP: 308)
With a primary upward trend and reduced volatility, Inox presents a good buying opportunity in near future. The stock has broken out of a major resistance area at 300 regions & looking poised for higher prices ahead. Inox closed at 308 & one may buy it on pullback to 295 regions with stop at 287 & target 320.
(Sell) Motherson Sumi (CMP: 168)
Auto ancillary happens to be one of the weakest sectors & Motherson Sumi is a notable underperformer in this sector (Others are Exide Inds, MRF etc). Prices are trading below 200 day averages & the stock itself has been in the process of making lower top formation on daily chart. We therefore recommend selling Motherson Sumi at CMP 168 with stop loss at 176 on closing basis & target 140.
