Gail India, Indraprastha Gas have given a fresh breakout, says Ajit Mishra

The Religare Broking analyst also recommends buying Apollo Tyres

Apollo Tyres Limited

Recommendation: Buy

Last Close: Rs 221.05

Initiation range: Rs 218-220

Target: Rs 234

Stop loss: Rs 213

We’re seeing noticeable traction in tyre stocks with the rebound in the auto counters. Apollo Tyre has been witnessing a gradual up move after retesting the major support zone of long term moving average (200-EMA). Indications are in the favour of a steady rise from hereon. 

GAIL (India) Limited

Recommendation: Buy

Last Close: Rs 156

Initiation range: Rs 152-155

Target: Rs 166

Stop loss: Rs 149

GAIL has witnessed a breakout from a congestion zone, after spending nearly 3 months in a corrective phase. The sharp surge in volumes combined with the existence of a strong support zone of moving averages ribbon on the daily chart is further adding to the positivity. We thus recommend initiating fresh longs in the given range.

Indraprastha Gas Limited

Recommendation: Buy

Last Close: Rs 587

Initiation range: Rs 585-590

Target: Rs 625

Stop loss: Rs 570

IGL has witnessed a breakout from the consolidation range of 500-585 levels after spending nearly nine months. The chart pattern combined with overall buoyancy in the energy space is pointing towards a steady rise. Traders shouldn’t miss this opportunity and accumulate in the mentioned zone.

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Disclaimer: Ajit Mishra is VP - Research at Religare Broking.

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