Here's why Mehul Kothari recommends buying Tata Power, Sunteck Realty

According to the technical analyst from Anand Rathi, Suntech Realty is on the verge of breakout; whereas, Tata Power is testing its key support.

BUY

SUNTECK REALTY

TARGET: Rs 540

STOP LOSS: Rs 470

The stock SUNTECK REALTY has been trading in a range of Rs 500 – 430 since past couple of months. At this point in time, the stock is on the verge of breakout from the mentioned range. Post breakout we expect a faster momentum on the upside. Thus, one can accumulate the stock in the range of Rs 500 - 495 with a stop loss of Rs 470 for an upside target of Rs 540 in the coming 2 – 3 weeks.

BUY

TATAPOWER

TARGET: Rs 280

STOP LOSS: Rs 240

In the course of its strong uptrend, TATAPOWER consolidated in a band of Rs 260 – 200 for many months. Recently the stock broke out from that range and almost tested the Rs 300 mark. However, it is again at the breakout zone. The target for range breakout comes around Rs 320 but we are also witnessing a flag breakout on the larger time frame. Thus we advise traders to go long in the stock in the range of Rs 258 – 250 with a stop loss of Rs 240 for an upside target of Rs 280 in 2 – 3 weeks.

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