Stocks to Buy: Here’s why Kotak Bank, IndusInd Bank are a buy
The benchmark Nifty recently experienced a significant decline, falling below the 50-day moving average (50DMA). The current trend appears to be negative, with immediate support situated at 19,500. A further decline below this level could potentially lead the index towards the range of 19,150 to 19,000. On the upside, the zone between 19,600 and 19,650 is expected to act as a strong resistance. A move above 19,650 could trigger short covering in the market.
Bank Nifty
The Bank Nifty index has been locked in a persistent struggle between bullish and bearish forces, resulting in a period of consolidation that has extended for the past two days. The index is currently teetering at a crucial “make or break” point. The level of 43500 is regarded as decisive. A breach below the 43500 level is anticipated to trigger additional selling pressure in the market. On the other hand, if this level manages to hold on a closing basis, it could prompt a substantial short-covering rally. The potential target for such a move is around 44500, where there is a notable accumulation of open interest on the call side.
1) Sell BHEL 125-126 TGT 117/115 SL 130
The stock has broken below the consolidation range on the daily chart, indicating a growing sense of pessimism among investors. Furthermore, the stock has dipped below a critical moving average, and the RSI indicator has entered into a bearish crossover. In the short term, it’s likely that the stock could decline to the range of 117-115. Resistance levels on the higher end are observable at 130.
2) Buy INDUSINDBANK 1455-1470 TGT 1525 SL 1430
Indusind Bank shows strong potential for a breakout, with both daily and weekly charts indicating upward momentum. The stock rebounded from a support level with high trading volume and closed above a critical moving average. Additionally, RSI suggests increasing momentum. A strategic buy range is 1455-1470, with a stop loss at 1430 and a target of 1525.
3) Buy KotakBank 1770 TGT 1820/1860 SL 1740
Kotak Bank has recently undergone a base formation on the daily chart. This pattern is characterized by the presence of strong buying activity, confirming a bullish undertone in the stock. The momentum indicator RSI is displaying positive divergence, which serves as an early indicator of a potential trend reversal to the upside. This suggests that the stock may be poised for a bullish move. The stock has a visible support level at 1700, which is acting as a cushion for the bulls. This support level is crucial for maintaining the bullish sentiment. Given the strong buying, positive RSI divergence, and the support at 1740, the stock has the potential to reach upside targets of 1820 and 1860.
The author, Kunal Shah is Senior Technical & Derivative analyst at LKP Securities.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
“Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!” Click here!
Download Finplay News App to get Daily Market Updates.
More
Less
Updated: 22 Oct 2023, 10:44 AM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.