Three stocks Ajit Mishra is bullish on: Buy Bata India, Berger Paints

Apollo Tyres

Recommendation: Buy

Last Close: Rs 235.75

Initiation range: Rs 233-235

Target: Rs 254

Stop loss: Rs 225

We are seeing fresh traction in tyre stocks and Apollo Tyre also looks set to reverse the trend. It has been consolidating in a range for the last four months while holding firmly above the support zone of medium term moving average (100 EMA) on the daily chart. Indications are in the favor of breakout in near future. We thus recommend creating fresh longs in the given range.

Berger Paints

Recommendation: Buy

Last Close: Rs 837.65

Initiation range: Rs 835-840

Target: Rs 885

Stop loss: Rs 815

Berger Paints after the recent up move has been consolidating in a narrow range around its record high. The chart pattern and positioning of indicators are pointing towards a steady up move ahead. Traders shouldn’t miss this opportunity and create longs in the mentioned zone.

Bata India

Recommendation: Buy

Last Close: Rs 1568.85

Initiation range: Rs 1555-1565

Target: Rs 1640

Stop loss: Rs 1515

Bata India has retraced marginally after retesting the previous swing high around the Rs 1,680 zone and is currently hovering around the support zone of short term moving average (50 EMA) on the daily chart. It may see some consolidation around the current levels, followed by a rebound. We advise utilising this phase and creating fresh longs in the given range.

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