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Stock picks by Religare Broking: Buy Bharti Airtel, Godrej Consumer

Airtel's stock has surpassed the hurdle around 540 levels

Markets | Market technicals | Stock tips

Ajit Mishra  |  Mumbai 

Markets, Buy, Sell, Stocks, Shares
Airtel's latest surge was accompanied by noticeable rise in volumes

Buy Limited

Last Close: Rs 546.25

Initiation range: Rs 540-545

Target: Rs 570

Stop loss: Rs 530

has been witnessing correction for the last three months or so, after making a record high at 609.55 in May 2020. It retraced closer to the support zone of the long-term moving average (200 EMA) on the daily chart and spent nearly a week around that zone. Finally, it has witnessed a sharp surge in Tuesday's (September 1) trade with noticeable rise in the volume and also surpassed the hurdle around 540 levels. We advise utilizing any dip in the given range to create fresh longs.

Buy Products Limited

Last Close: Rs 658.20

Initiation range: Rs 655-660

Target: Rs 690

Stop loss: Rs 645

We’re seeing a mixed trend within the FMCG space and is currently in a corrective phase. After it failed to cross the resistance zone of the declining trend line on the weekly chart around 715 level, it slipped further lower and tested the major support zone of 200 EMA on Tuesday. It rebounded swiftly thereafter and settled around the day’s high. Indications are in the favor of steady recovery from hereon.

Sell Oil & Natural Gas Corporation Limited

Last Close: Rs 79.35

Initiation range: Rs 80-81

Target: Rs 74

Stop loss: Rs 83.5

ONGC has been underperforming the index for the last several years as it is trading in a prolonged downtrend. In line with the others, it also witnessed a rebound from the March lows but failed to sustain above the resistance barrier of 100 EMA on the daily chart despite multiple attempts. The recent failure of one such attempt means the downtrend is likely to continue. Traders can create fresh shorts within the mentioned zone.

Sell Limited

Last Close: Rs 635

Initiation range: Rs 638-642

Target: Rs 610

Stop loss: Rs 655

has retraced marginally in the last two weeks, after retesting the resistance zone around 680 levels. The chart pattern and positioning of the indicators are pointing towards the possibility of a fresh slide ahead. We suggest using any technical bounce in the given range to create shorts.

Disclaimer: Ajit Mishra is VP - Research at Religare Broking

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First Published: Wed, September 02 2020. 08:09 IST