Weekly stock recommendations by Ajit Mishra: Buy MGL, The Ramco Cements

Cholamandalam Investment and Finance Company 
 

Recommendation: Buy 

Last Close: Rs 568.50

Initiation range: Rs 565-570

Target: Rs 620

Stop loss: Rs 545
 

Cholamandalam Investment and Finance has been consolidating within Rs 500-600 zone for the last three months. It is currently trading closer to the upper band of the range while holding firmly above the support zone of the short-term moving average (50 EMA). Indications are in the favor of a breakout soon, so we advise utilising the prevailing phase to initiate fresh positions.  
 

Mahanagar Gas Limited
 

Recommendation: Buy 

Last Close: Rs 1,265.80

Initiation range: Rs 1,250-1,260

Target: Rs 1,350

Stop loss: Rs 1,210
 

MGL witnessed a fresh breakout from the consolidation range on June 15 and made new record highs as well. The chart pattern combined with prevailing buoyancy in other gas distributor stocks is pointing towards a steady up move from hereon. We thus advise accumulating in the mentioned zone.  
 

The Ramco Cements 
 

Recommendation: Buy

Last Close: Rs 1,024.30

Initiation range: Rs 1,015-1,025

Target: Rs 1,090

Stop loss: Rs 990
 

We are seeing a mixed trend within the cement space and Ramco Cements is set to resume the uptrend after a pause. It has spent nearly two months in a narrow range of Rs 935-1010 and witnessed a breakout on June 15. Traders should not miss this opportunity and create fresh longs in the mentioned range. 

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Disclaimer: Ajit Mishra is VP - Research at Religare Broking.
https://www.religareonline.com/disclaimer