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Weekly stock picks by Religare Broking: Buy Tech Mahindra, UltraTech Cement

UltraTech Cement has recently surpassed the hurdle of multiple moving averages on the daily chart and is likely to witness fresh momentum

Religare Broking  |  Mumbai 

Bonds, Stock markets, Shares, Trading

Buy Limited

Last Close: Rs 777.10

Initiation range: Rs 770-775

Target: Rs 805

Stop loss: Rs 758

TECHM has been showing strength despite volatility in the market and holding strongly above the support zone of multiple moving averages. It has rebounded sharply in the last five months after re-testing its weekly support zone placed around 605 levels and still looks upbeat about maintaining this positive momentum. We advise initiating fresh longs within the given range.

Buy Limited

Last Close: 4,242.10

Initiation range: 4,220-4,230

Target: 4,410

Stop loss: 4,120

We’re seeing mixed trend within the cement space and ULTRACEMCO is currently trading in a range. It has recently surpassed the hurdle of multiple moving averages on the daily chart and is likely to witness fresh momentum. Its current chart formation combined with recent buoyancy in other cement stocks is further adding to the positivity. We, thus, advise creating fresh longs as per the recommended levels.

Sell January Futures of Canara Bank

Last Close: Rs 208.40

Initiation range: Rs 210-212

Target: Rs 190

Stop loss: Rs 220

The PSU banking pack has been struggling for the last several years and CANBK is no different. It has made multiple attempts to surpass the resistance zone of 200 EMA on the daily chart of late but has failed and that result in formation of fresh shorting pivot also. We thus suggest traders to initiate fresh shorts in the mentioned range.

Sell January Futures of ITC Limited

Last Close: Rs 236.80

Initiation range: Rs 237-239

Target: Rs 227

Stop loss: Rs 242

We’re seeing a mixed trend in the FMCG space and ITC has been underperforming the majority of its peers for the last several months. It’s currently trading closer to its 52-week low and likely to see a fresh breakdown in the near future. We advise initiating fresh shorts in the mentioned zone.


First Published: Wed, January 08 2020. 07:50 IST