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Stock picks by Ajit Mishra of Religare Broking: Buy Britannia Ind, Dabur

RBL Bank has been consolidating in a range of Rs 160-195 levels for the last two months, after a sharp rebound from its record low
Britannia Industries 

 
Recommendation: Buy

 
Last Close: Rs 3,896.85

 
Initiation range: Rs 3,870-3,890

Target: Rs 4,200

 
Stop loss: Rs 3,740

 
Britannia has been among the top-performing FMCG counters for the last several years. After a sharp dip in March 2020, it recovered almost vertically and made a new record high at Rs 4,010 in July 2020. It’s currently hovering in a range while holding firmly above the support zone of short term moving average (20 EMA) around its record high. Indications are in the favor of prevailing consolidation to end soon. Traders should use this pause to accumulate the stock in the given range.

Dabur India 

 
Recommendation: Buy

 
Last Close: Rs 491.95

 
Initiation range: Rs 485-490

 
Target: Rs 520

Stop loss: Rs 475

 
In line with other FMCG majors, Dabur has also been experiencing volatile swings but has been showing tremendous resilience on every dip and recently made a new record high as well. The marginal profit-taking in the last two weeks is offering a fresh buying opportunity. We advise accumulating within the mentioned zone.

RBL Bank

 
Recommendation: Buy

 
Last Close:Rs 188.95

 
Initiation range: Rs 186-190

 
Target: Rs 215

 
Stop loss: Rs 175

 
RBL Bank has been consolidating in a range of Rs 160-195 levels for the last two months, after a sharp rebound from its record low. It is currently trading around the upper band of the range and likely to see breakout this time. The chart pattern and positioning of the indicators are adding to the confirmation. We advise creating fresh longs in the given range.

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Disclaimer: Ajit Mishra is VP - Research at Religare Broking



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