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Top stock picks by Nilesh Jain of Anand Rathi: Buy Coforge, Divis Labs

The stock of Coforge has formed a double bottom pattern at 2,100 levels and showing reversal from the same
BUY COFORGE | TARGET: Rs 2,500 | STOP LOSS: Rs 2,200

The stock has formed a double bottom pattern at 2,100 levels and showing reversal from the same. It has also reclaimed its short-term 21-DMA which is placed at 2315 levels.The momentum indicators and oscillators are in the buy mode on the daily scales which hints at a further positive momentum in the counter. The recent rally in the stock was on the back of the short-covering move, we can expect long the buildup of position in the coming sessions. 

BUY DIVIS LAB | TARGET: Rs 3,550 | STOP LOSS: Rs 3,250

The stock earlier provided a breakout from a descending triangle formation on the daily chart and now it has retested the breakout levels and again has started moving higher. The momentum indicator RSI has also breached the falling trend line and MACD provided a fresh buy crossover on the daily chart which hints of further positive momentum in the counter. It is also trading well above its short-term and long-term moving averages. Based on the above rationale we can expect a fresh momentum in the counter.

BUY MANAPPURAM | TARGET: Rs 169 | STOP LOSS: Rs 155

The stock is trading in the range of 155-169 and currently, it is near its lower end of the range and risk and rewards are in the favor of the long positions. It also surpassed the centerline of the Bollinger band which is called the exponential moving average and now it is heading towards the upper end of the band which is placed at 169 levels. It also reclaimed its short-term 21-DMA which was placed at 160 levels. The momentum indicators and oscillators have turned positive on the daily chart which hints at a strong pullback in the short term. 

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Disclaimer: Nilesh Jain is Technical and Derivatives Research - Equity Research at Anand Rathi Shares and Stock Brokers. He may have positions in one or all of the above mentioned stocks. Views are personal.


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