Investing Essentials

Two stock recommendations for Monday

03 Oct , 2021   By : Kanchan Joshi

Two stock recommendations for Monday

Nifty rallied for the straight fifth month in September with a rise of about 3 per cent. 23 Nifty50 stocks delivered more than 3 per cent return. The undertone of Nifty was negative last week as its inability to cling on to higher levels eventually triggered profit taking. Nifty ended in the negative zone for the fourth consecutive day on Friday. The levels of 17,750-17,800 could act as immediate hurdle, while negative follow-up action is likely to open up further downside projections till 14,400-14,300.

After marking a record high at 38,377, Nifty Bank lost 4 per cent in volatile trade. For the current year so far, Nifty is up by 25 per cent, whereas Nifty Bank is up by 19 per cent; a decisive breakthrough with sustenance above 38,000 is essential to re-gain some positive momentum in the banking index.

Nifty PSU Bank index rose 6 per cent this week. A positive follow-up action could continue its recent revival phase; whereas Nifty IT index lost 6 per cent to digest multi-months gains.

Stock Recommendations

Interglobe Aviation: Sell Interglobe Aviation October futures near Rs 1,990-1,995

Stop loss: Rs 2,045

Target price: Rs 1,890

Sustenance below Rs 2,000 is likely to drag the stock further lower till Rs 1,880.

Adani Enterprises: Sell Adani Enterprises October futures near Rs 1,470-1,480

Stop loss: Rs 1,520

Target price: Rs 1,390

Recent rally found stiff resistance near Rs 1,550. A decline thereafter ensured influence of resistance at play.

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