Here's why Vinay Rajani of HDFC Securities is bullish on SBI, PFC

The technical analyst also recommends to hold Nifty longs with a stop at 16,100; on the upside, he expects resistance for the NSE benchmark around 16,520 and 16,794.

Nifty View

The Nifty has been rising for the last three consecutive sessions. The NSE index has managed form another higher top and higher bottom formation by surpassing the previous swing high of 16,275.

The Nifty has also surpassed its 50-day EMA resistance placed at 16,145. Resistance for the Nifty is now seen at 16,520 and 16,794.

Nifty Longs should be held with the stop loss at 16,100.

PFC

BUY

Buy Range: Rs 112.35 - 109

Targets: Rs 118, 123

Stop Loss: Rs 107

The stock has broken out from the bullish “Cup and handle” pattern on the daily chart. The price breakout is accompanied with jump in volumes.

Further, the stock has surpassed the crucial resistance of its 200-day EMA. The stock has also taken out the resistance derived from downward sloping trend line on the weekly charts.

The stock can be bought in two tranches one at CMP and second at Rs 109, for targets of Rs 118 and Rs 123, keeping a Stop Loss at Rs 107.

SBIN

BUY

Buy Range: Rs 498- 480

Targets: Rs 530, 555

Stop Loss: Rs 475

The stock price has broken out from the bullish “Flag” pattern on the daily charts with rising volumes. The stock has formed higher top and higher bottom formation on the weekly chart.

The stock has also surpassed the resistance derived from downward sloping trend line on the weekly charts.

The Bank Index has closed on a strong wicket on the short term charts and is expected to outperform.

The stock can be bought in two tranches one at CMP and second at Rs 480, for targets of Rs 530 and Rs 555, keeping a Stop Loss of Rs 475.

(Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC securities. Views expressed are personal).