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Buy Asian Paints Limited
Last Close: Rs 2,914.40
Initiation range: Rs 2,900-2,910
Target: Rs 3,020
Stop loss: Rs 2,840
Rationale: Asian Paints has witnessed a fresh breakout from the pennant pattern (indicates a pause after a sharp surge) and made a new record high as well. The overall chart pattern indicates that the prevailing momentum is likely to continue. Traders shouldn’t miss the opportunity and create fresh longs in the mentioned zone.
Buy Dr. Reddy's Laboratories Limited
Last Close: Rs 5,311.20
Initiation range: Rs 5,300-5,310
Target: Rs 5,490
Stop loss: Rs 5,185
Rationale: Most pharma stocks are consolidating in a range after the phenomenal move and Dr. Reddy's is also trading in tandem with the others. It slipped marginally after testing the previous swing high around the 5,400 zone and is currently hovering in a narrow band. Indications are in the favor of gradual recovery from hereon. We, thus, advise creating longs in the given range.
Buy IDFC First Bank Limited
Last Close: Rs 58.95
Initiation range: Rs 58-59
Target: Rs 65
Stop loss: Rs 55.50
Rationale: We are seeing noticeable traction in the banking stocks and expect this trend to continue. Among the banking names, IDFC First Bank has witnessed a breakout from a congestion zone of late with a noticeable rise in volumes. All indications pointing towards a steady up move in near future.
Disclaimer: Ajit Mishra is VP - Research at Religare Broking.
