Kotak Bank among top 3 technical picks by Prabhudas Lilladher
2 min read . Updated: 13 Dec 2022, 04:35 PM IST
PremiumVaishali Parekh of Prabhudas Lilladher has chosen Kotak Bank, Bajaj Finance and BSE as her preferred medium-term technical picks. Read on to know the target prices and stop losses:
The Indian market closed the day in the green tracking the global cues while investors waited for US inflation data and US Fed meet outcome. Back home, a fall in inflation numbers also supported the market sentiment. At 5.88%, India's consumer price index (CPI), fell below the RBI's upper tolerance level of 6% for the first time in 11 months in November.
While there are fears of a possible slowdown or recession in 2023, but experts are hoping that the impact would be moderate.
Vaishali Parekh, Vice President-Technical Research, Prabhudas Lilladher has suggested Kotak Bank, Bajaj Finance, and BSE as her preferred medium term technical pick for the coming months. Here is why:
1. Kotak Bank
Target: ₹2040 | Stop loss: ₹1,800 | CMP: ₹1,868.55
The stock after the short correction has attained the trendline support zone of 1850 levels to show signs of bottoming out and is anticipated to give a pullback to improve the bias and indicate a trend reversal. With a move past the significant 50EMA level of 1898, the trend would be further strengthened to expect targets of 2000-2040 in the coming days. With the risk reward ratio favourable, we recommend a positional buy in this stock for an upside target of ₹2,040 keeping a stop loss of ₹1,800.
2. Bajaj Finance
Target: ₹7,300 | Stop loss: ₹6,350 | CMP: ₹6,615
The stock has made a decent correction right from 7750 to 6387 levels and has made a trend reversal with MORNING STAR pattern on the daily chart to indicate improvement in the bias and further rise is anticipated. Also it has completed 50 % retracement level of the recent correction and with a decisive move past 6700 ( 200 DMA ) would further strengthen the trend and can anticipate further upward movement for higher targets. The RSI indicator also has confirmed the buy signal with a trend reversal and we suggest to buy this stock for an upside target of 7300 keeping the stop loss of 6350.
3. BSE
Target: ₹650 | Stop loss: ₹570 | CMP: ₹586.60
“The stock has made a double bottom formation like pattern in the daily chart and has recovered substantially from thereon and is on the rise. We anticipate further momentum in this stock to scale still higher targets and with also the RSI indicator reversing its trend signaling a buy, it has maintained a positive bias. We recommend this stock for a buy for an upside target 650 of keeping a stop loss of 570."
Note: Current market price is as on December 13.
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.
