Stock recommendations by Anand Rathi: Buy HDFC Bank, Lupin, Sonata Software

The stock of HDFC Bank is showing signs of reversal which hints of further positive momentum in the counter

BUY HDFC BANK | TARGET: Rs 1,500 | STOP LOSS: Rs 1,405

The stock has provided a breakout from a falling channel and has negated the formation of a lower top and lower bottom formation on the daily chart. It also surpassed the centerline of the 'Bollinger Band' which is called the exponential moving average, and now is on the verge of a breakout from the upper end of the band which is placed at 1,445 levels. The momentum indicator RSI has also reversed from its oversold territory and is showing signs of reversal which hints of further positive momentum in the counter. The stock also witnessed built up of a long position on the derivative front. Based on the above rationale we can expect a fresh momentum in the counter.

BUY LUPIN | TARGET: Rs 1,020 | STOP LOSS: Rs 940

The stock is forming a rounding bottom formation on the daily chart. It also surpassed its 50-DMA which is placed at 940 levels is and likely to act as immediate support. The momentum indicators and oscillators are in the buy mode on the weekly as well as daily scales which hints at a further positive momentum in the counter. The stock has also witnessed a short-covering rally and now we might see some fresh long built-up in the counter.

BUY SONATA SOFTWARE | TARGET: Rs 400 | STOP LOSS: Rs 350

The stock has provided a fresh breakout from a rising channel on the daily chart. It is also trading well above its short-term and long-term moving averages. The momentum indicators and oscillators have turned positive on the weekly chart which hints at a strong momentum in the short term. 

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Disclaimer: Nilesh Jain is Technical and Derivatives Research - Equity Research at Anand Rathi Shares and Stock Brokers. He may have positions in one or all of the above mentioned stocks. Views are personal.