Mehul Kothari suggests going long on Bajaj Finance, Aditya Birla Fashion

On the daily scale, Bajaj Finance is witnessing a fresh breakout which indicates a short term reversal

BUY ABFRL NEAR Rs 255 | TARGET: Rs 275 | STOP LOSS: Rs 245 

First of all; the stock has entered an oversold zone after a corrective move of around three months. The weekly RSI is now at a multiple support zone and, historically, this has resulted in bullish reversal most of the time. At this point in time; the risk-reward looks good to go long. Thus, we advise traders to go long in the stock near Rs 255 with a stop loss of Rs 245. 

BUY BAJFINANCE NEAR Rs 6,100 | TARGET: Rs 6,700 | STOP LOSS: Rs 5,750 

Recently, the stock has turned from the long term rising trend line support placed near Rs 5,700 mark. On the daily scale, we are witnessing a fresh breakout which indicates a short term reversal. In such a scenario; the stock might provide a pullback towards the placement of its 200-day moving average. Thus, we advise traders to go long in the stock near Rs 6,100 with a stop loss of Rs 5,750. 

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