ICICI Lombard, Biocon, Hindalco: Three stocks Anand Rathi is bullish on

As regards Biocon, the stock has provided a breakout from the inverse head and shoulders pattern with an increase in volume. There is a buy crossover in its oscillators as well

NIFTY: BUY TGT 12050/12100 SL: 11800

Nifty closed firm on Monday above the 11900 mark, which is a positive sign in the short-term. The index has been forming 'wave E' of the rising wedge pattern and is expected to inch towards the upper end of this pattern. The short-term target, however, is 12050/12100 and the support is seen at 11800 levels.

HINDALCO: BUY TGT: 210 SL: 190

The stock has completed the right shoulder of the inverse head and shoulders pattern, which is a bullish reversal pattern. The daily as well as weekly momentum indicator, MACD, is well in the buy mode. The move prior to this up move was impulsive. Hence, another impulse wave on the way up has started.

BIOCON:  BUY TGT:  282 SL: 249

The stock has provided a breakout from the inverse head and shoulders pattern with an increase in volume. There is a buy crossover in its oscillators as well. The support on the lower side is pegged at 249. The conservative target is 282.

ICICI Lombard General Insurance:  BUY TGT 1450 SL: 1265

The stock has provided a breakout from the ascending triangular pattern and seems to be retesting the same in the short-term. The stock has an aggressive target of 1450 in the wave 5 up. We suggest buying this stock for the above mentioned target, keeping the stop loss at 1265.

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Note: All figures for stocks in Rs unless stated otherwise. Nifty level in points.

Disclaimer: Jay Anand Thakkar is CMT -Assistant Vice President - Equity Research, Anand Rathi Shares and Stock Brokers. Views expressed are his own. He may/may not have position(s) in the stocks and index mentioned above.