Jatin Gedia of Sharekhan recommends buying these two stocks today

Shriram Finance

Shriram Finance was trading in a downward sloping channel. It has found buying interest at the support zone Rs 2,700 – Rs 2,680 where parameters in the form of the 40 day exponential moving average and the daily lower Bollinger band was placed. 

It has broken out of that channel on the upside indicating trend reversal. The daily momentum indicator has reached the equilibrium line suggesting that consolidation has matured and can start a new cycle. We expect the stock to reach levels of Rs 2,990 – Rs 3,059 from a short-term perspective. One should keep a stop loss of Rs 2,800 for the long positions

GAIL India

GAIL has broken out of a resistance zone of Rs 233 – Rs 235. The breakout has been accompanied with above average volume. Daily Bollinger bands are expanding indicating that the upmove is likely to continue. 

Daily momentum indicator has a positive crossover which is a buy signal. Thus, we expect the positive momentum to continue. On the upside, we expect levels of Rs 247 – Rs 252 from a short-term perspective. Stop loss of Rs 232 should be maintained for the long positions.

(Jatin Gedia is a technical research analyst at Sharekhan by BNP Paribas. Views expressed are his own)