Modest Profit Booking

Mumbai: Markets have been rising for the past five trading sessions. Hence, a small correction was expected. Prashanth Tapse, senior V-P (research), Mehta Equities, says: “With RBI springing no major surprise in its credit policy announcement, investors booked profit in select frontlines.” Although the undertone remains that of caution, the return of FIIs into local equities through select bullish bets has come as a major reprieve to investors.

STOCK PICKS

Policy Bazaar | TRADE-BUY | CMP: Rs2,004 | SL: Rs1,900 | TARGET: Rs2,100 and Rs2,150

Policy Bazaar has broken out above a key resistance level, supported by strong volumes and upward momentum. The stock is trading above its 50-day and 200-day moving averages, indicating a sustained bullish trend. The breakout is further validated by an upward breach of trendlines, suggesting potential upside toward Rs2,100 and Rs2,150. A stop loss at Rs1,900 ensures risk management.

Bank of India | TRADE-BUY | CMP: Rs117 | SL: Rs113 | TARGET: Rs125 and Rs130

Bank of India has witnessed a breakout above Rs115, coupled with a volume spike, confirming buying interest. The stock is trading near its immediate resistance and is supported by upward-trending moving averages. With a well-defined stop loss at Rs113, the stock shows a potential for further upside, targeting Rs125 and Rs130.

(Source: Riyank Arora, technical analyst at Mehta Equities)