Ajit Mishra is bullish on Amara Raja, Cummins & PFC. Check why

AMARA RAJA BATTERIES

Recommendation: Buy

Last Close: Rs 724.45

Initiation range: Rs 715-720

Target: Rs 760

Stop loss: Rs 695

Amara Raja Batteries has been trading with a corrective bias for the last eight months and recently tested the major support zone around Rs 690 levels. The oversold positions combined with the existence of strong support around current levels indicate the possibility of a sharp rebound ahead. Traders shouldn’t miss this opportunity and create fresh longs in the mentioned zone. 

CUMMINS INDIA 

Recommendation: Buy

Last Close: Rs 909.70

Initiation range: Rs 905-910

Target: Rs 980

Stop loss: Rs 875

Cummins India witnessed a breakout from a Cup and Handle pattern on August 3, with a noticeable surge in volumes. All indications are in the favour of a strong surge ahead. We thus advise creating fresh longs in the mentioned zone.

POWER FINANCE CORPORATION

Recommendation: Buy

Last Close: Rs 132

Initiation range: Rs 129-132

Target: Rs 144

Stop loss: Rs 126

PFC has witnessed a breakout from a consolidation range of late and made a new record high as well. The chart pattern indicates the prevailing uptrend to continue with intermediate dips. We advise accumulating gradually in the given range.

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Disclaimer: Ajit Mishra is VP - Research at Religare Broking.

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