Here's why Ajit Mishra is bullish on Petronet, Motherson, Muthoot Finance

The technical analyst from Religare Broking recommends to buy and accumulate these stocks in the mentioned range

Motherson Sumi Systems Limited
Recommendation: Buy
Last Close: Rs 238.65
Initiation range: Rs 235-237
Target: Rs 250
Stop loss: Rs 230

We are seeing noticeable traction in the auto & ancillary space and Motherson Sumi also looks set to resume the trend. The stock seems to be gradually rebounding after forming a strong base around Rs 220 levels and is likely to retest the previous swing high soon. We recommend creating fresh longs in the mentioned zone.

Muthoot Finance Limited
Recommendation: Buy
Last Close: Rs 1,629.05
Initiation range: Rs 1,610-1,620
Target: Rs 1,700
Stop loss: Rs 1,580

Muthoot Finance has witnessed a fresh breakout from a consolidation range of Rs 1,450-1,580 and made a new record high as well. The chart pattern is pointing towards a strong up move. Traders shouldn’t miss this opportunity and accumulate the stock in the given range.

Petronet LNG Limited
Recommendation: Buy
Last Close: Rs 235.60
Initiation range: Rs 232-234
Target: Rs 244
Stop loss: Rs 229

Petronet LNG has been consolidating within Rs 210-260 levels for over a year and currently trading in the middle of the band. The stock has formed a strong base around Rs 230 levels which also coincides with the support zone of long-term moving average (200-EMA) on the daily chart. Indications are in the favor of a steady up move from hereon. We thus recommend creating fresh longs in the mentioned zone.

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

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