 "Stock picks by Ajit Mishra of Religare Broking: Buy SBI Life, Wipro")
Buy SBI Life Insurance Company Limited
Last Close: Rs 845
Initiation range: Rs 835-845
Target: Rs 900
Stop loss: Rs 815
SBI Life has been consolidating for the last one and a half months, after a strong rebound from the March lows. It’s holding strongly above the support zone of the long-term moving average (200 EMA) on the daily chart and indications are now in the favor of gradual recovery ahead. Traders should accumulate within the given range.
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Buy Wipro Limited
Last Close: Rs 282.55
Initiation range: Rs 278-282
Target: Rs 300
Stop loss: Rs 268
The IT index is not only holding strong but also inching higher while others are seeing profit-taking or trading in a downtrend. Among all the IT majors, Wipro is trading on the verge of a fresh breakout, after consolidating for nearly a month. We advise creating longs in the mentioned zone.
Sell Futures of Shriram Transport Finance Company Limited
Last Close: Rs 660
Initiation range: Rs 665-670
Target: Rs 600
Stop loss: Rs 700
In line with other NBFC counters, Shriram Transport Finance also witnessed a rebound but it couldn’t hold above the hurdle of major moving averages (100 and 200 EMA) on the daily chart despite multiple attempts. The chart pattern is now indicating the possibility of a fresh fall in the near future. Traders should utilise any bounce to create fresh shorts in the mentioned range.
Sell Vedanta Limited Futures
Last Close: Rs 125.15
Initiation range: Rs 126-127
Target: Rs 116
Stop loss: Rs 132
The metal pack has done exceptionally well in the last four months. However, most stocks have now reached closer to their major hurdles. VEDL, too, has tested the resistance zone of the declining trend line on the weekly chart of late and is gradually drifting lower. Indications are in the favour of further fall thus traders can consider initiating fresh shorts in the given range.
Ajit Mishra is VP - Research at Religare Broking
Disclaimer: http://www.religareonline.com/disclaimer
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