Stocks to Buy: Here’s why Wipro and IDFC are looking attractive
Indian stock market: The Nifty’s upward momentum persists with the bulls maintaining control in the market. Achieving a new all-time high, the index has marked its seventh consecutive weekly gain. The prevailing sentiment appears strongly in favor of the bulls, as indicated by the absence of any reversal signals on the technical charts. Resistance is observed at 21,500, while a potential further rally in the Nifty could occur upon breaching this level. Support is currently positioned at 21,300.
Bank Nifty
The Bank Nifty bulls maintain their robust momentum, pushing the index beyond the 48000 level. The overall market sentiment remains bullish, supported by a strong base at 47500. Any retracements towards this support level are seen as buying opportunities. The upside potential for the index is projected to reach 50000, indicating continued optimism among market participants.
Stocks to Buy
Wipro | Recommendation: Buy | CMP: ₹447 | Target: ₹480/515 | Stop Loss: ₹414
The stock has formed an extended consolidation pattern on the weekly chart, signaling increased optimism. Additionally, the recent robust demand for this IT stock could further bolster its demand. Furthermore, the price has surpassed the crucial moving average on the weekly chart. On the upside, there’s potential for movement towards 480/515. Support is established at 414; a drop below this level might prompt the stock to revert back into a consolidation phase.
SBIN | Recommendation: Buy | CMP: ₹650-640 | Target: ₹700/715 | Stop Loss: ₹620
State Bank of India (SBIN) has exhibited a robust breakout on the weekly chart, accompanied by a sharp surge in volumes. The momentum indicator, RSI, is comfortably trading in the buy zone, confirming the bullish momentum. The stock has a strong lower-end support at 620, acting as a cushion for the bulls. With this positive setup, the potential upside targets for SBIN are identified at 700/715.
IDFC Ltd. | Recommendation: Buy | CMP: ₹127-125 | Target: ₹135/140 | Stop Loss: ₹122
IDFC Ltd has exhibited a compelling breakout on the daily chart, accompanied by a significant surge in volumes. The positive momentum is further confirmed by the bullish crossover on the momentum indicator RSI. The stock finds support at 122, creating a strong base, while the potential upside targets are anticipated at 135/140.
The author, Rupak De is Senior Technical 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.
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Published: 17 Dec 2023, 02:37 PM IST
