Top ten rate sensitive stocks in focus post RBI policy meet
Rate sensitive stocks cracked in after the RBI maintained status quo on policy rates. Here are technical recommendations on top ten such stocks.
Despite the considerable moderation in WPI inflation, analysts at most brokerage firms believed that RBI might not ease policy rates today as upside risks to inflation on rupee weakness, increase in administered prices.
According to dealers, the market had already factored in 'no change in interest rates' by the RBI. The trade is likely to remain choppy and move in line with global peers in the near term, they said.
The central bank in its guidance said that the monetary policy stance will be determined by how growth and inflation trajectories and the balance of payments situation evolve in the months ahead.
"Reserve Bank of India's meet was on expected lines and if going forward rupee strengthens, we can expect a 50 bps rate cut in July policy," said AK Prabhakar, Senior Vice President Equity Research, Anand Rathi Financial Services.
"As long as markets are holding 5750 level, the market can climb towards 5900-5950 as positive Island reversal is in play," he added.
The BSE Banking Index closed 0.43 per cent higher, led by gains in Union Bank of India (up 2.1 per cent), Axis Bank (up 1.4 per cent) and SBI (up 0.9 per cent).
The S&P BSE Realty index closed 0.03 per cent higher, led by gains in IB real Estate, which was up 1.3 per cent followed by Unitech and DLF which were up 0.9 per cent and 0.1 per cent respectively.
The BSE Auto Index closed 1.9 per cent, led by gains in M&M, which rose 4.4 per cent higher at Rs 989.40, followed by Bajaj Auto, which gained 2.5 per cent and Maruti Suzuki which was up 1.3 per cent.
We have collated technical recommendations from various analysts on rate sensitive stocks post RBI policy meet:
Analyst: Gaurav S. Ratnaparkhi, Technical Analyst at Sharekhan Ltd
IDFC: Sell, SL - 144.70, TGT - 130
The stock has broken a medium term rising trendline & has retested the same. It is poised for a fresh round of selling. Short term momentum indicators are in bearish mode.
Indiabulls Real Estate: Sell, SL - 69.70, TGT - 61
The stock is in short term downtrend. It has fallen below crucial daily as well as weekly moving averages. Daily lower Bollinger Band is making room for the stock on the downside.
DLF: Sell, SL - 192.50, TGT - 175
The stock has been trading in a narrow range since last few sessions. In terms of price patterns, it has formed a Bearish flag pattern & is on the verge of a breakout on the downside.
Tata Motors: Sell, SL - 299, TGT - 273
The stock has recently done a minor degree pullback till its key daily moving averages. From there it has resumed with the larger fall. Daily momentum indicator is showing further downside potential.
Unitech: Sell, SL - 22.10, TGT - 19.50
The stock has been forming lower-top-lower-bottom on the daily chart, which is a sign of a downtrend as per Dow Theory. In terms of wave structure, it is forming wave extension on the downside.
Analyst: Vinit Pagaria, VP - Investment Strategies at Microsec Capital Ltd
PNB: Sell, CMP – 737, SL - 745, TGT1 - 728, TGT2 - 722
PNB has been under pressure since some time and the stock is likely to correct further after RBI’s announcement to leave Repo, Reverse Repo and CRR unchanged.
HDIL: Buy, CMP - 36.25, SL - 35.50, TGT1 - 37, TGT2 - 37.50
HDIL is trading in extremely oversold zone and a pullback is likely which could take the stock higher up to 37 and 37.50 soon.
Tata Motors: Buy, CMP - 292, SL - 288, TGT1 - 296, TGT2 - 299
Tata Motors is trading in the negative territory but is likely to bounce back up to 296 and 299 in the next couple of days.
Prakash Gaba, CFT, prakashgaba.com
HDFC Bank Ltd is a ‘BUY’ call with a target of Rs 860 and a stop loss of Rs 830.
Hero MotoCorp Ltd is a ‘BUY’ call with a target of Rs 1675 and a stop loss of Rs 1608.
The views and recommendations expressed in this section are the analysts' own and do not represent those of EconomicTimes.com