Here's why Vinay Rajani suggests buying Chalet Hotels, UTI AMC

According to technical analyst from HDFC Securities, Chalet Hotels is trying to find support at 50 days EMA, whereas, UTI AMC has formed a bullish 'hammer' candlestick pattern on the chart.

BUY | CHALET HOTELS

TARGET: Rs 335

STOP LOSS: Rs 295

The stock of CHALET HOTELS has broken out from its symmetrical triangle on the daily chart. The price breakout was accompanied by a jump in volume counter. That apart, daily MACD crossed the signal and equilibrium line on the upside. Not only this but the DMI indicator has also turned bullish on the daily charts as the stock is trying to find support at 50 days EMA. Hence, one can accumulate the stock with a target price of Rs 335 and stop loss of 295.

BUY | UTI AMC

TARGET: Rs 788

STOP LOSS: Rs 695

While the stock managed to close above its 5-day EMA, oscillators on the daily charts have exited the oversold zone. Recently, the stock has formed bullish “Hammer” candlestick pattern on the daily chart. Thus, we advise investors to go long on the stock with a target price of Rs 788 and stop loss of Rs 695. 

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