Indian stock markets have been consolidating over the last few sessions, with the Nifty hovering around the key 8,650-8,700 levels. Some analysts expect the Nifty to correct, while others bet on continuation of the rally that has taken the Nifty to 15-month highs. Ruchit Jain, equity technical analyst with Angel Broking, spoke on stocks that he tracks.
Stock Talk
Buy State Bank of India: The stock has been making higher top and higher bottom formation on charts for last 3-4 months now. Immediately, the stock faces resistance around Rs 255. Those holding the stock should continue to hold and those looking to buy should wait for a dip towards Rs 235 to buy this stock.
Buy Axis Bank: Outperformance in Axis Bank is likely to continue and there are no signs of reversal of uptrend. Investors who are long in Axis Bank should stay long and those looking to buy Axis Bank can buy with stop loss at Rs 572 for target of Rs 620.
Buy LIC Housing Finance: Going ahead LIC Housing Finance will outperform other non-banking finance companies (NBFCs). The stock has given a breakout and is forming higher top and higher bottom formation on charts. The stock can go up to Rs 575-580.
Avoid Aditya Birla Nuvo: AB Nuvo is a less volume stock and after the news flow volatility has increased in this stock. On downside, stock has support around Rs 1,100-1,120. Given the volatility it is best to avoid AB Nuvo at current juncture.
Buy Hindalco for target of Rs 160 with stop loss at Rs 130.
Buy United Spirits: It has shown significant correction from Rs 4,000. On long term charts, United Spirits has support at Rs 2,050-2,060. The stock will not show major correction and investors should look to buy USL around Rs 2,060 with stop loss below Rs 1,900 for an upside target of Rs 2,500-2,600.
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