BoB, SBI Life: Two stocks Vinay Rajani of HDFC Securities is bullish on

The index witnessed profit booking in the last hour of the trade on Tuesday, February 9, 2021. Nifty ended with a minor loss to close at 15,109. Nifty, Bank Nifty and Financial Nifty indices have been forming candle with the small body for the last three consecutive sessions, which indicates that bullish momentum is getting lost. 

Post Budget, markets have registered a sharp rally and still, there is no sign of reversal seen as of yet. Nearest support for the Nifty is seen at 5 days EMA which is placed at 14,929, and unless that is breached on a closing basis, the trend should be considered bullish only. On the upside, Nifty faces resistance at 15,470 which happens to be 161.8% retracement of the entire fall seen from January 2020 (12,430) to March 2020 (7,511). 

Buy Bank of Baroda (Rs 80): | Target Rs 85 | Stop-loss Rs 77         

The stock has seen facing correction from the last three session’s high. The primary trend of the stock has been bullish as it has been forming higher tops and higher bottoms. The stock is placed above medium to long term moving averages.PSU Banks are expected to perform well in the short to medium term. A correction from recent high should be seen as a buying opportunity. 

Buy SBI Life (Rs 890): | Target Rs 960 | Stop-loss Rs 858

The stock formed a strong base at 850 odd levels and bounced northward sharply with high volumes on February 9, 2021. The stock price has broken out from the consolidation which held for the last 12 sessions. It has been taking support at its 200-DEMA for the last couple of weeks. Insurance companies seem to have resumed their primary uptrend after healthy correction seen in recent past. Indicators and oscillator have turned bullish on the short term charts.  

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Disclaimer: Vinay Rajani is Senior Technical and Derivative Research Analyst at HDFC Securities. The analyst doesn't have any holding in the stock. Views are personal