Stock recommendations by Anand Rathi: Sell Piramal Enterprises, L&T Finance

The momentum oscillator MACD has provided fresh sell crossover on the weekly scale for Piramal's stock

SELL PEL | TARGET: Rs 1,130 | STOP LOSS: Rs 1,240

The stock has breached its major support of the 200-day simple moving average which is placed at 1,240 which will now act as an immediate hurdle. It is also making a lower top and lower bottom formation on the daily chart. The momentum oscillator MACD has provided fresh sell crossover on the weekly scale which hints at further weakness in the counter.

SELL L&TFH | TARGET: 52 | STOP LOSS: 59

The stock has provided breakdown from a double-top formation, which was placed at 59 levels. It is also making a lower top and lower bottom formation on the daily chart. The momentum indicators and oscillators are in the sell mode on the daily as well weekly scales which hints at a further downside pressure in the counter. 

BUY HEROMOTOCO | TARGET: Rs 3,040 | STOP LOSS: Rs 2,830

The stock is making a higher top and higher bottom formation on the daily chart which means till the time it doesn’t break below its previous swing low of 2,830, the overall structure looks positive. It is also taking the support of a rising trend line which indicates every decline will attract fresh buying interest from lower levels. The momentum oscillator MACD is very much in buy mode on weekly chart which hints of further positive momentum in the counter.
Disclaimer: Nilesh Jain is Technical and Derivatives Research - Equity Research at Anand Rathi Shares and Stock Brokers. He may have positions in one or more stocks. Views are personal.