As conveyed in this column previous week, the hammer formation got further credence as Nifty rose each of the five trading sessions this week. The uptrends are therefore continuing in all timeframes but 10400 is serving as a strong support area which if taken out will increase the probabilities of taking out all out high at 10490. On the other hand, if 10300 gets broken, a short term weakness might creep in.
NBFC stocks are among the star performers of the present bull run & Ujjivan Finance is an outperformer in this sector. In fact, the recent weakness in broader market does not reflect in Ujjivan daily chart. We therefore recommend buying it at 408 with stop loss at 390 & target 440.
IT stocks are also outperforming the broader market & Infy is coming out of its long hibernation. Buy on decline to 995 regions with stop loss at 969 & target 1040.
Textile sector is looking resilient and stocks like Raymond, Arvind or Century Textiles might hog the limelight nest week. We recommend buying Raymond @ CMP with stop loss at 958 & target 1025.
This stock is about to break out from a multi-month resistance area. Buy on decline to 1810 regions with stop at 1776 & target 1865.
