BUY Eicher Motors and State Bank of India: Gaurav Garg, CapitalVia Global Research
Gaurav Garg, Head of Research at CapitalVia Global Research Limited, has suggested BUY Calls for short term for Eicher Motors and PSU banking major State Bank of India. Indian markets have been trading strong over the last few trading sessions and banking stocks have managed to gain ground after facing selling couple of weeks ago. SBI and some of the better managed private sector banks are on investors’ buying list.
Gaurav Garg has suggested BUY Call for automobile major Eicher Motors above Rs 2260. The target price suggested for Eicher Motors is Rs 2385.
Investment Rationale: The stock is witnessing reversal from lower levels of Rs 2,150. Resistance level breakout from the level of 2,260, which is immediate resistance, might lead stock higher. The stock is sustaining above important averages. Considering the technical evidence discussed, we recommend buying the stock above 2,260 for the target of Rs 2,385, keeping a stop loss at Rs 2,175 on a closing basis.
BUY State Bank of India above Rs 200 for target price of Rs 224
Investment Rationale: State Bank of India is forming a reversal pattern on daily charts. Breakout from the level of 200 would lead the stock to witness more upward movement. The stock is showing signs of reversals with volumes We recommend buying the stock above 200 for the target of Rs 224, keeping a stop loss at Rs 186 on a closing basis.
All investments should be done keeping in mind the Stop Loss suggested for the trade.