 "Markets, Buy, Sell, Stocks")
NIFTY: BUY
TGT: 10,750
SL: 10,557
The Index has closed in the negative territory for the last couple of days, however, the rise so far has been in an upward sloping channel and it has been forming higher tops and higher bottoms on the daily charts. So, till the previous swing low of 10,557 is not broken the short term trend remains positive. On the flip side, if 10,557 break then the Index will slide till 10,200 levels.
CASTROL: BUY
TGT: Rs 187
SL: Rs 165
Castrol has closed well in the positive territory in the last trading session. The rise prior the recent correction was impulsive on the hourly charts, hence another impulse is not expected on the way up. The daily momentum indicator is well in buy mode, so one can buy for the target of 187 with a stop loss of 165.
Dr. Reddy: BUY
TGT: Rs 2,087
SL: Rs 1937
It has reversed well from the lower end of the falling channel with a double bottom formation as well as with a positive divergence. The minimum equality target on the upside comes to 2087 whereas on the lower side, 1937 is the swing support it has. So, we recommend buying Dr.Reddy for the target of 2087 with a stop loss of 1937.
The author is Jay Anand Thakkar, Assistant Vice President - Equity Research at Anand Rathi.
Disclaimer: He may / may not have positions in the stocks mentioned above.
