Stock ideas by Ajit Mishra of Religare Broking: Buy Info Edge, Sun Pharma

Indraprastha Gas Limited

Recommendation: Buy

Last Close: Rs 549.95

Initiation range: Rs 545-550

Target: Rs 580

Stop loss: Rs 534

IGL has witnessed a breakout from the consolidation range of Rs 500-545 levels after spending nearly four months there. It has formed a strong base while holding above the support zone of the medium-term moving average (100 EMA) on the daily chart. The recent surge in volumes further adds to the confirmation. We thus recommend accumulating in the mentioned zone.

Info Edge (India) Limited

Recommendation: Buy

Last Close: Rs 4,952.85

Initiation range: Rs 4,900-4,940

Target: Rs 5,200

Stop loss: Rs 4,750

Info Edge (Naukri) has been consolidating for the last six months after forming a new record high at Rs 5,868 levels in January 2021. It has tested the support zone of the long-term moving average (200 EMA) twice during this phase and rebounded sharply thereafter. It is currently hovering in a narrow range and likely to surpass the resistance zone of the previous swing high of Rs 5088 level soon. We advise using any dip in the mentioned zone to create fresh longs.

Sun Pharmaceutical Industries Limited

Recommendation: Buy

Last Close: Rs 677.60

Initiation range: Rs 670-675

Target: Rs 695

Stop loss: Rs 664

Sun Pharma has been trading in a steady uptrend since July 2020 and made a new 52-week high of Rs 721.85 in May 2021. After a marginal correction in the last one and a half months, it looks set to resume the uptrend. The recent buoyancy in the pharma pack is an added positive. Traders can consider initiating long positions in the given range.  

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Disclaimer: Ajit Mishra is VP - Research at Religare Broking
https://www.religareonline.com/disclaimer