Stock calls by Religare Broking: Buy ITC, Marico; sell ICICI Bank futures

Here are the weekly stock recommendations by Religare Broking

ITC Limited

Recommendation: Buy

Last Close: Rs 303.40

Initiation range: Rs 302-303

Target: Rs 318

Stop loss: Rs 296

After a strong rebound from Rs 268 to Rs 310 levels, ITC has retraced marginally of late and has reached closer to the support zone around Rs 300 levels. Considering the current market scenario and existence of support zone of moving averages, it’s advisable to prefer defensive stocks for buying. Traders can initiate fresh longs as per the mentioned zone.

Marico Limited

Recommendation: Buy

Last Close: Rs 363.10

Initiation range: Rs 355-357

Target: Rs 375

Stop loss: Rs 345

We’re currently seeing mixed trend on FMCG front. Among the bullish counters, Marico has surpassed the hurdle of multiple moving averages on the daily chart of late and is gradually inching higher. All indications are in the favour of prevailing trend to continue. We advise traders to initiate fresh longs in the given range.

Ashok Leyland Limited

Recommendation: Sell May Futures

Last Close: Rs 92.50

Initiation range: Rs 93-95

Target: Rs 84

Stop loss: Rs 98

Most auto stocks are trading under pressure and Ashok Leyland  is no different. Though it had made an attempt to surpass the hurdle of long term average i.e. 200-EMA on the weekly chart but in vain. It’s gradually inching lower and forming a fresh shorting pivot. The current chart pattern and the confirmation indicators are also pointing towards fresh fall ahead. We suggest traders to go short as per the mentioned levels.

ICICI Bank Limited

Recommendation- Sell May Futures

Last Close: Rs 399.05

Initiation range: Rs 401-404

Target: Rs 385

Stop loss: Rs 410

Banking majors are either trading under pressure or witnessing consolidation. Amongst all, ICICI Bank is currently hovering in a range, after forming a new record high and likely to see profit taking in near future. We advise initiating fresh shorts in the given levels.

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Disclaimer: The brokerage may have positions in any or all the stocks mentioned above.

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