Eicher Motors, Indian Bank among top picks by Ruchit Jain of MOFSL

Eicher Motors has been a relative outperformer in the Auto space in the recent correction and the prices have now given a breakout from a consolidation and has rallied to its all-time highs

Buy CHOLAFIN | CMP ₹1,611 SL ₹1,562 |TGT ₹1,715                                         

The stock has been forming a ‘Higher Top Higher Bottom’ structure and is thus in an uptrend. Prices have given breakout from a ‘Cup and Handle’ pattern on the daily chart with increasing volumes and the RSI oscillator too has been indicating a positive momentum.

 

Buy Indian Bank | CMP ₹566 | SL ₹552 | TGT ₹590

The stock has given a breakout from a ‘Bullish Flag’ pattern on the daily chart. The breakout has been supported by high volumes and hence we expect the stock to rally higher in near term. The RSI oscillator is also hinting at a positive momentum.

 

Buy EICHERMOT | CMP ₹5,615 | SL ₹5490 | TGT ₹5870   

The stock has been a relative outperformer in the Auto space in the recent correction and the prices have now given a breakout from a consolidation and has rallied to its all-time highs. The volumes are good along with the price upmove and the RSI is also positive hinting at a continuation of the uptrend. 

(Disclaimer: Ruchit Jain is head of equity technical research, wealth management at Motilal Oswal Financial Services Ltd. Views expressed are his own.)