Three stock ideas by Ajit Mishra: Buy Britannia, Muthoot Fin, Piramal Ent

Britannia Industries
 

Recommendation: Buy 

Last Close: 3,631.65

Initiation range: 3,615-3,630
 

Target: 3,800
 

Stop loss: 3,520
 

Britannia has been among the top-performing FMCG counter for the last several years. After a sharp dip in March 2020, it recovered almost vertically and made a new record high in July 2020. It has been hovering in a broader range for the last six months while holding strongly above the support zone of the long term moving average(200 EMA) on the daily chart. Indications are in the favor of gradual recovery ahead. We thus advise accumulating in the given range. 

Muthoot Finance
 

Recommendation: Buy
 

Last Close: 1,276.65
 

Initiation range: 1,270-1,280
 

Target: 1,380
 

Stop loss: 1,230
 

Muthoot Finance has recently witnessed a breakout, after spending nearly six months in a consolidation range. It has taken a pause after the initial up move and currently hovering around the neckline(breakout) area of the consolidation pattern, offering an opportunity to create fresh longs for those who missed the chance earlier. 
 

Piramal Enterprises

Recommendation: Buy
 

Last Close: 1,564.50
 

Initiation range: 1,545-1,555
 

Target: 1,650
 

Stop loss: 1,490

PEL has been consolidating in a range for the last six months and formed a continuous pattern on the daily chart. It’s currently trading around the upper band of the consolidation range and the recent surge in the price combined with an uptick in the volumes indicates a possibility of a breakout in near future. Traders shouldn’t miss this opportunity and accumulate in the mentioned zone. 

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Note: All prices are in rupees

Disclaimer: Ajit Mishra is VP - Research at Religare Broking

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