Stock picks by Ajit Mishra of Religare Broking: Buy SBI Life, Wipro

SBI Life's stock is holding strongly above the support zone of 200 EMA on the daily chart

Buy SBI Life Insurance Company Limited

Last Close: Rs 845

Initiation range: Rs 835-845

Target: Rs 900

Stop loss: Rs 815

SBI Life has been consolidating for the last one and a half months, after a strong rebound from the March lows. It’s holding strongly above the support zone of the long-term moving average (200 EMA) on the daily chart and indications are now in the favor of gradual recovery ahead. Traders should accumulate within the given range.

Buy Wipro Limited

Last Close: Rs 282.55

Initiation range: Rs 278-282 

Target: Rs 300

Stop loss: Rs 268

The IT index is not only holding strong but also inching higher while others are seeing profit-taking or trading in a downtrend. Among all the IT majors, Wipro is trading on the verge of a fresh breakout, after consolidating for nearly a month. We advise creating longs in the mentioned zone.
 

Sell Futures of Shriram Transport Finance Company Limited

Last Close: Rs 660

Initiation range: Rs 665-670

Target: Rs 600

Stop loss: Rs 700

In line with other NBFC counters, Shriram Transport Finance also witnessed a rebound but it couldn’t hold above the hurdle of major moving averages (100 and 200 EMA) on the daily chart despite multiple attempts. The chart pattern is now indicating the possibility of a fresh fall in the near future. Traders should utilise any bounce to create fresh shorts in the mentioned range.

Sell Vedanta Limited Futures

Last Close: Rs 125.15

Initiation range: Rs 126-127

Target: Rs 116

Stop loss: Rs 132

The metal pack has done exceptionally well in the last four months. However, most stocks have now reached closer to their major hurdles. VEDL, too, has tested the resistance zone of the declining trend line on the weekly chart of late and is gradually drifting lower. Indications are in the favour of further fall thus traders can consider initiating fresh shorts in the given range.
Ajit Mishra is VP - Research at Religare Broking
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