Top stock recommendations by Anand Rathi: Buy Berger Paints, sell Sun TV

Stock recommendation by Jay Anand Thakkar, CMT -Assistant Vice President - Equity Research, Anand Rathi Shares and Stock Brokers

NIFTY: SELL

TARGET: 11,000

STOP LOSS: 11,220

Nifty closed in the negative territory in the last trading session and with that it has provided a sell crossover in its daily MACD which is a negative sign in the short term. The Index continues to form lower tops and lower bottoms; hence the bears have an upper hand.

SUN TV: SELL

TARGET: Rs 425

STOP LOSS: Rs 475

The stock has been forming lower tops and bottoms on the hourly charts and with that it has also provided a breakdown from the symmetrical triangular pattern which is a negative sign going forward. The daily as well as hourly momentum indicator MACD has provided a sell crossover.

BERGER PAINTS:  BUY

TARGET: Rs 470

STOP LOSS: Rs 420

The stock has provided a breakout from the sideways consolidation formed in its wave 4 and with a fresh buy crossover in its hourly momentum indicator MACD the probability of wave 5 up is quite high, hence we recommend buying Berger Paints.

COLPAL:  BUY

TARGET: Rs 1,590

STOP LOSS: Rs 1,410

The stock has completed wave four corrections in an ABC pattern and from here on wave 5 up is expected. The weekly MACD continues to be in buy mode, hence we recommend buying it for the target of 1590 with a stop loss of 1410.