Nifty’s trend non-directional, BFSI stocks witness profit-booking; Hindalco, TVS Motors among stocks to buy

By Shrikant Chouhan

On last Tuesday, the benchmark indices closed higher. Among sectors, buying was seen in auto, FMCG and healthcare stocks whereas banking and financial stocks witnessed intraday profit booking at higher levels. Technically, after an early morning intraday rally, the index took the resistance near 19,500 and reversed, yet once again.

Hindalco

BUY | CMP: Rs 424.3 | TARGET: Rs 445 |  SL: Rs 415

For the past few weeks, Hindalco has been into a range bound mode with a higher low series formation. Meanwhile, on the daily scale, it has formed an ascending triangle chart pattern. The structure indicates breakout from the current levels and the beginning of a new up move in the counter.

TVS Motors

BUY | CMP: Rs 1346.3 | TARGET: Rs 1410 | SL: Rs 1320

On the daily charts, TVS motors has given a breakout of the Symmetrical triangle chart pattern along with decent volume activity. The structure suggests that TVS motors has enough potential for further upside from the current levels.

Grasim Industries

BUY | CMP: Rs 1766.6 | TARGET: Rs 1860 | SL: Rs 1730

After hitting the recent highs of around 1800, Grasim witnessed selloff and dropped to the lower side. However, it has found support near the important retracement zone. As a result, the bullish trend is very likely to continue for further up move in the near term.

Larsen & Toubro

BUY | CMP: Rs 2478.35 | TARGET: Rs 2600 | SL: Rs 2430

After the robust rally from the lower levels, L&T took a breather for a few sessions with a gradual down move. However, the formation of a bullish Marubozu candlestick pattern with a good volume suggests a likely strong up move in the counter in the coming horizon.

(Shrikant chouhan, head of equity research (retail), kotak securities limited. Views expressed are the author’s own. Please consult your financial advisor before investing.)

BSE revises Jio Fin price band to 20% from today

The BSE has revised the price band for Jio Financial Services to 20% from the earlier 5%, effective Monday. It was among 10 stocks for which the exchange announced a revision in price bands.Set by stock exchanges, price bands serve as limits for securities in order to curb extreme volatility in share prices.In addition, the stock will no longer be in the trade-to-trade (T2T) segment. The stock is expected to be removed from the NSE indices this week, subject to the condition that it doesn’t hit the upper or lower circuit in two consecutive sessions.Analysts say that with thanks to revision of the price band from 5% to 20%, chances of Jio hitting upper/lower circuits are slim.

According to Nuvama Institutional Equities, Jio could exit the NSE indices on Wednesday if it doesn’t hit the circuit limit on Monday and Tuesday. Nuvama’s calculation suggests JFS’ exit could lead to the sale of 105 million shares by Nifty50 passive trackers.