Last few days, we were seeing Bank Nifty struggling around 41,100, 41,000 kind of levels, but today with this gap up and it has maintained this gap on the upside and it is still holding on to the gains. So, I feel 41,000 will now act as a strong support until this holds. We will see Bank Nifty move on to 41,700, 41,800 in the next few sessions to come.
What about the stock specific recommendations?Stock specific, if we see, my first pick would be ICICI Bank. Since I am expecting Bank Nifty to move up from the current levels up to 41,700, 41,800, I feel after HDFC Bank and Kotak Bank which has already moved in the last few days, now it is time for ICICI Bank which was the leader of the last year’s bull run in Bank Nifty, so this stock is now sustaining above its 200 DMS in the last seven-eight sessions.
Stock is also taking good support at around 860-865 levels and it is trading above all its short and medium term moving averages. So, with the kind of setup that the stock is showing, I feel that the stock is headed up to Rs 920-930 in the next few sessions and we could keep a stop loss of Rs 865 for the same. Now, second pick would be TVS Motors. In the last couple of days, we have seen the auto stocks rebounding, showing some kind of a traction followed by Bajaj Auto, Eicher Motors and now TVS Motors. So, my pick would be TVS Motors. Stock was resisting around 1080, 1100 kind of levels, now when it is sustaining above that level I feel the stock could move up to 1140-1150 in the next few sessions and one can keep a stop loss of Rs 1080 on the downside.