Stocks to Buy: SBI Life, Reliance among top choices, here’s why
Indian stock market: Following a rapid rebound from its positional support at 21500, bullish activity has resumed in the market, with buying interest evident during dips. The prevailing sentiment is bullish, but Nifty encounters initial resistance at 21750, facing selling pressure. Immediate support rests at 21600. A conclusive close above 21750 levels could propel Nifty towards the 22000 mark, signaling further upward movement.
Bank Nifty
Exhibiting a robust recovery from the 47500 support level, Bank Nifty showcases active bullish activity, rebounding from the 14-day moving average support at 47800. A closing above 48200 is crucial, as it could propel the index towards 48500 and 48800 levels. The immediate support for Bank Nifty stands at 47800, indicating a key level to monitor in the current market scenario.
Stocks to Buy
SBI Life | Recommendation: Buy | CMP: ₹1440-1455 | Target: ₹1510/1535 | Stop Loss: ₹1415
SBI life is exhibiting a positive trend on the daily chart with consistent higher highs and higher lows. Currently, it sustains above its 20-day moving average, indicating underlying strength. The Relative Strength Index (RSI) is on the verge of a bullish crossover, suggesting potential upward momentum. Consider initiating a long position in the range of 1440-1455, setting a stop loss at 1415, and targeting upside levels of 1510/1535.
Reliance | Recommendation: Buy | CMP: ₹2607 | Target: ₹2760/2900 | Stop Loss: ₹2525
Reliance Industries Limited is exhibiting positive technical signals: The stock has recently closed above its major resistance at 2593, indicating a fresh weekly breakout with increasing volume. Additionally, the stock is showing a Positive Divergence on the weekly chart, signifying positive strength. The RSI crossover is indicating buying opportunities at current levels. As per the current breakout, there’s a technical expectation of reaching levels around 2760 to 2900 on the upside. To manage risk effectively, it’s recommended to maintain a stop-loss at 2525 on a closing basis. For potential investors, a favourable entry point is at the current market price (CMP) and on dips around 2580.
Bajaj Finance | Recommendation: Buy | CMP: ₹7711 | Target: ₹8000/8300 | Stop Loss: ₹7500
Bajaj Finance Limited is currently exhibiting positive technical indicators: The stock has recently closed above its major resistance at 7650, signalling a fresh weekly breakout with increasing volume. A recent swing high breakout on the daily chart indicates substantial strength in the stock. The RSI crossover suggests a buying opportunity at current levels. Based on the breakout, there is a technical expectation of reaching levels around 8000 to 8300 on the upside. To manage risk effectively, it is advisable to maintain a stop-loss at 7500 on a closing basis. For potential investors, a good buying entry point is at the current market price (CMP) and on dips around 7660.
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.
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Published: 07 Jan 2024, 12:36 PM IST
