Here's why HDFC Securities recommends buying Metropolis, Zensar Tech

Vinay Rajani of HDFC Securities is bullish on Metropolis, Zensar Tech.

Nifty managed to close in green for 5 out of last 6 sessions. The index has risen 840 odd points from the recent swing low of 16,410. Now, it has reached the crucial resistance of the 50 days EMA and downward sloping trend line on the daily chart. The resistance is seen in the range of 17,250-17,350 for Nifty. Any close above 17,350 would negate the bearish developments on the chart. Support for the Nifty is seen at 17,000. 

Stock Recommendations:

Buy Metropolis (3445.35) | Target: Rs 3625 | Stop-loss: Rs 3330

The stock has broken out from the consolidation, which held for last five months. It has been finding support on its 50 days EMA. Indicators and oscillators have turned bullish on daily and weekly charts. The stock has been forming higher tops and higher bottoms on weekly charts. 

Buy Zensar Tech (498.70) | Target: Rs 540 | Stop-loss: Rs 480

The stock price has broken out from inverted head and shoulder pattern on the daily chart. It has broken out from downward sloping trend line on the daily chart and is trading above all important moving averages. IT sector has been outperforming for last many months and same is expected to continue. Indicators and oscillators have turned bullish on daily chart.

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Disclaimer: Vinay Rajani, Senior Technical & Derivative Analyst, HDFC securities. Views expressed are personal.