The Nifty50 which opened with a mild gap on the upside on Monday witnessed marginal profit taking in the opening trade but bounced back from 10,019 and made a strong bullish candle on charts. Banking stocks came to the rescue of Nifty50, which was languishing in a narrow trading range after SBI slashed its rates on saving bank account. The rate cut led to a strong rally in Nifty Bank, which touched fresh record high.
The Nifty on Monday ended at fresh record closing high of 10,077.10, up 62.60 points. According to Pivot charts, the key support level for Nifty is placed at 10,034.1, followed by 9,991.1. If the index starts to move higher then key resistance levels to watch out are 10,103.0, followed by 10,128.9.
The Nifty Bank also ended at record closing high of 25,103.65 on Monday, up 1.18 percent. Important pivot level, which will act as crucial support for the index is placed at 24,898.76 followed by 24,693.83. On the upside, the key resistance level is 25,238.36 followed by 25,373.03.
Technical Analyst Prakash Gaba of prakashgaba.com is of the view that the trend is still up and the next logical technical target in the days to come is 10128-10260 as long as 9920 holds. The crucial support for the Nifty is at 9940-9920 and the resistance is at 10128-10260-10536. Bank Nifty has support at 24850 and resistance at 25550.
Below are the 4 stocks which can be bought today:
HDFC: Indicator buy | Rating: Buy | Target: Rs 1840, stop loss: Rs 1760
Kajaria Ceramics: Breakout | Rating: Buy | Target: Rs 700, stop loss: Rs 660
L&T Finance Holdings: New High | Rating: Buy | Target: Rs 184, stop loss: Rs 175
State Bank of India: Momentum Pull | Rating: Buy | Target: Rs 325, stop loss: Rs 305Disclaimer
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