The Indian stock market witnessed gains in its second consecutive session, with the BSE Sensex climbing 0.25% to settle at 72,026.15, and the NSE Nifty rising 0.24% to close at 21,710.80. As the trading week begins, focus is expected on notable large-cap stocks such as SBI Life Insurance Company Ltd, Reliance Industries Ltd, and Bajaj Finance Ltd. Here are the insights from Kunal Shah, Senior Technical and Derivative Analyst at LKP Securities, for these stocks ahead of Monday's trading session:
SBI Life displays a positive trend on the daily chart, characterized by consistently higher high-low formations. The stock is currently maintaining levels above its 20-day moving average, indicating underlying strength. The Relative Strength Index (RSI) is poised for a bullish crossover, signaling potential upward momentum. A long position is suggested in the range of Rs 1,440-1,455, with a stop loss set at Rs 1,415, targeting Rs 1,510-1,535.
Reliance Industries exhibits positive technical signals, closing above a crucial resistance at Rs 2,593, signifying a fresh weekly breakout with increased volumes. Positive divergence on the weekly chart adds to the bullish sentiment. The RSI crossover at current levels indicates potential buying opportunities, with a technical expectation of reaching Rs 2,760 to Rs 2,900. Risk management is advised with a stop-loss at Rs 2,525.
Bajaj Finance reveals positive technical indicators, closing above a significant resistance at Rs 7,650, indicating a fresh weekly breakout with rising volume. A recent swing high breakout on the daily chart signals substantial strength. The RSI crossover suggests buying opportunities, anticipating levels around Rs 8,000 to Rs 8,300. Effective risk management involves maintaining a stop-loss at Rs 7,500, and potential investors may consider entering at current prices or on dips around Rs 7,660.
