Bata India, McDowell: Stocks that Nilesh Jain of Anand Rathi is bullish on

Bata India's stock is on the verge of a breakout from a downward sloping trend line

BUY NIFTY | TARGET: 11,350 | STOP LOSS: 11,100

The Nifty index continued to make a higher top and a higher bottom pattern and also achieved our short term target of 11,200. The overall structure is still looking positive as long as it holds its 200-DMA which is placed at 10,865 levels. The momentum indicators and oscillators are very well in the buy mode on the weekly scale which hints that bulls still have the upper hand. The volatility index, IndiaVIX, is hovering near 25 levels which is giving comfort to the bulls. Thus, aggressive traders can initiate a long position with a strict stop loss of 11,100.

BUY BATAINDIA | TARGET Rs 1,370 | STOP LOSS: Rs 1,280

The stock is on the verge of a breakout from a downward sloping trend line which is placed at 1,324. It is also taking the support of its short term 21-DMA which is placed at 1,300 levels. The MACD has provided fresh buy crossover on the daily chart. The momentum indicator RSI is also making a higher highs and higher lows from the lower levels, which hints that the current rally is likely to continue further.

BUY MCDOWELL-N | TARGET: Rs 645 | STOP LOSS: Rs 590

The stock is trading in a rising channel where the lower end of the channel is placed at 590. The overall structure indicates that it is likely to test the upper end of the channel which is placed at 645. The MACD has provided a buy crossover on the hourly chart which hints of a further positive momentum in the counter.

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.