Here's why Mehul Kothari recommends buying HDFC Bank, Sunteck

According to the technical analyst from Anand Rathi, HDFC Bank is trading near multiple support area, hence the probability of the stock resuming its uptrend is high.

BUY HDFCBANK

Target: Rs 1,625

Stop Loss: Rs 1,450

After the recent correction, HDFC BANK is hovering near the 61.8 per cent retracement level of the entire rally which started from Rs 1,400 to Rs 1,700. This support coincides with the gap area formed due to the merger news. Also the support zone is also the placement of Kijun from Ichimoku indicator. Hence there is a high probability that the stock might resume its uptrend. Thus, short term traders are advised to buy the stock in the range of Rs 1,515 - Rs 1,505 with a stop loss of Rs 1,450 for an upside potential target of Rs 1,625 in the coming 2 to 3 weeks.

BUY SUNTECK

Target: Rs 530

Stop Loss: Rs 450

SUNTECK is on the verge of a massive breakout which might get confirmed above Rs 500 mark. At this juncture, the trend is very strong and the price action indicates that the possibility of the breakout is very high. In addition, at this juncture the risk to reward ratio looks highly lucrative to go long. Thus, one can accumulate the stock near Rs 480 with a stop loss of Rs 450 for an upside target of Rs 530 in the coming 2 – 3 weeks.

Mehul Kothari - AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal.