Eicher Motors, Zee Ent: Trading ideas by Ajit Mishra of Religare Broking

Here's why the analyst recommends accumulating Eicher Motors and Voltas, but to sell Zee Entertainment Futures

Eicher Motors Limited
Recommendation: Buy
Last close: Rs 2,823.15
Initiation range: Rs 2,780-2,800
Target: Rs 2,960
Stop loss: Rs 2,710

We are seeing a mixed trend within the auto space and Eicher Motors has recently witnessed a breakout from a consolidation range of Rs 2,500-2750. Going ahead, it may see a marginal dip before resuming the trend. Traders shouldn’t miss this opportunity and accumulate in the mentioned zone.

Voltas Limited
Recommendation: Buy
Last close: Rs 1,187.25
Initiation range: Rs 1,175-1,185
Target: Rs 1,300
Stop loss: Rs 1,120

Voltas has surged strongly past the upper band of the consolidation range i.e. Rs 950-1130 with a noticeable surge in volumes. The chart pattern combined with the positioning of the oscillators is pointing towards a steady rise. We thus recommend creating fresh longs in the given range.

Zee Entertainment Enterprises Limited

Recommendation: Sell Sep Futures
Last close: Rs 178.35
Initiation range: Rs 183-185
Target: Rs 190
Stop loss: Rs 172

Though the market trend is up, it’s prudent to maintain few shorts also as a hedge due to overbought conditions. Among the sectors, media has been underperforming and Zee Ltd is no different. The recent bounce in the stock can be considered for initiating fresh shorts, citing strong resistance around the Rs 180-185 zone.

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Disclaimer: Ajit Mishra is VP - Research at Religare Broking. Views expressed are personal.

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