closed in the positive territory in the last trading session and with that it has settled in the green for the second consecutive trading session. The moving average convergence divergence (MACD) on the daily chart is still in the positive territory. Hence, there is a possibility of an extension. So, we recommend buying Nifty
for the target of 12,020 with a stop loss of 11,849.
MOTHERSON SUMI: BUY
TARGET: Rs 130
STOP LOSS: Rs 115
The stock has provided a breakout from the falling wedge i.e. an ending diagonal pattern which is a bullish reversal pattern. The stock seems to have completed a five wave falling structure which is again a positive sign for a bounce back. It has provided a buy crossover with a positive divergence; hence we recommend buying this stock.
TARGET: Rs 774
STOP LOSS: Rs 724
The stock after having broken out from the falling wedge pattern seems to have started another round of impulse on the way up. It is likely to head towards its previous highs whereas on the lower side it has a support at Rs 724 levels. Hence, we recommend buying this stock.
TARGET: Rs 640
STOP LOSS: Rs 606
The stock has provided a breakout from the ascending triangular pattern with an increase in volumes as well as clear buy crossover in its MACD; hence we recommend buying this stock.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.