Here's why Mehul Kothari recommends buying Britannia, HDFC Bank

According to the technical analyst from Anand Rathi, Britannia is hovering near its 200 DSMA support which also coincides with the ICHIMOKU cloud on the weekly scale, thus the downside seems marginal

BUY BRITANNIA

TARGET: Rs 3,800

STOP LOSS: Rs 3,380

Till the time there is uncertainty in the market; it is better to go with the stocks which seems to be safe and have good risk reward ratio. The stock BRITANNIA is hovering near its 200 DSMA support and also that support coincides with the ICHIMOKU cloud on the weekly scale. Thus the downside from here seems to be marginal. Traders can buy the stock on dips between Rs 3,530 – Rs 3,500 with a stop loss of Rs 3,380 for upside target of Rs 3,800 in 3 – 4 weeks.

BUY HDFCBANK

TARGET: Rs 1,600

STOP LOSS: Rs 1,440

We are choosing HDFCBANK for a scenario where things start settling down in the markets. In that case HDFCBANK could give a decent pullback since it is trading near strong weekly support of ICHIMOKU cloud. Also the daily RSI seems to be turning from the support of 30 value. Traders can buy the stock on dips between Rs 1,500 - Rs 1,480 with a stop loss of Rs 1,440 for upside target of Rs 1,600 in 3 – 4 weeks.

Mehul Kothari - AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal.