SBI, DLF, Bajaj Auto, Manappuram look good on charts post RBI policy

Manappuram Finance has so far on Friday post RBI rate hike has logged its biggest intra-day gain this year, the stock along with DLF, SBI and Bajaj Auto can rally up to 14 per cent in the near term.

The RBI Governor, Shaktikanta Das on Friday announced a 50 basis points (bps) hike in repo rate. This is the third straight rate hike since May this year as the Central Banker aims to combat soaring inflation.

Among the other key takeways the Central Banker, cut Q2FY23 inflation forecast to 7.1 per cent from 7.4 per cent earlier, while increased the Q3 forecast to 6.4 per cent from 6.2 per cent. The governor, however, retained real gross domestic product (GDP) growth rate at 7.2 per cent for the current financial year.
 

Amid this development rate sensitive stocks were in limelight today. Manappuram Finance soared nearly 10 per cent, the biggest gain in recent times. Shares of State Bank of India were up 1.5 per cent and seen inching towards a new historic peak, while automobile major Bajaj Auto and realty player DLF were trading with modest gains.

Here’s an outlook of rate sensitive stocks post repo rate hike on Friday:-

State Bank of India (SBIN) 

Likely target: Rs 600

Upside potential: 11%

A day prior to the RBI meeting outcome, shares of SBI clocked a new all-time high at Rs 546.40-mark with robust sentiment. The trend is up and suggesting momentum to get even stronger in the coming sessions. The recent price action exhibits “Higher High, Higher Low” formation symbolizing support at Rs 525 and Rs 510 levels, shows the daily chart. The medium-term outlook appears to be inching towards Rs 600-mark, and if the substantial moving averages proceeds for “Golden Cross”, then the stock might even scale higher levels.  CLICK HERE FOR THE CHART

DLF Ltd (DLF) 

Likely target: Rs 420

Upside potential: 13%

Whenever a stock conquers its 200-day moving average (DMA), investors consider the price move as bullish and look at it as potential winning entries. The same applies to DLF shares. The stock is sustaining over 200-DMA, which it crossed last week. The underlying trend is bullish with the 200-DMA cushion set at Rs 361.50 and short-medium prospects should aim to reach near Rs 420, its imminent barrier. There is also a trendline breakout on the daily chart. CLICK HERE FOR THE CHART

Bajaj Auto Ltd (BAJAJ-AUTO)

Likely target: Rs 4,500

Upside potential: 12%

Post hitting a new historic peak at Rs 4,091 in July this year, the stock witnessed mild profit booking. The chart structure may appear weak, however until the breakout mark of Rs 3,800 is defended; the stock bullishness may emerge unpredictably. The stock might rally to Rs 4,500 level, as long as the stock trades over the Rs 3,800 mark. CLICK HERE FOR THE CHART

Manappuram Finance Limited (MANAPPURAM)

Likely target: Rs 126

Upside potential:  14%

Manappuram Finance has a broke out of the “Inverse Head and Shoulder”, shows the daily chart. The stock has soared close to 10 per cent on Friday, its biggest intra-day gain so far in this year. Not only has it crossed 50-DMA, but conquered 100-DMA as well. This momentum suggests a rally towards Rs 126, which is its 200-DMA. The Moving Average Convergence Divergence (MACD) is firmly sustaining over the zero line, exhibiting a healthy momentum. CLICK HERE FOR THE CHART

Larsen & Toubro Ltd (LT)

Outlook: Needs to hold 200-DMA 

Shares of LT are trying to hold the wagon over the 200-DMA mark at Rs 1,766. If the price action sustains over the same, the stock could rally to Rs 2,000 mark, which is the next major hurdle. CLICK HERE FOR THE CHART