Trading calls by Ajit Mishra of Religare Broking: Buy Cipla, Eicher Motors

Eicher Motors' stock has been witnessing profit taking for the last one month, and is likely to see a gradual recovery from hereon

Cipla Limited
 

Recommendation: Buy 

Last Close: Rs 827.95

Initiation range: Rs 820-825

Target: Rs 860

Stop loss: Rs 805
 

We're seeing noticeable traction in pharma counters and Cipla is among the top performers. It has recently witnessed a breakout from a consolidation range of 725-800 zone after spending nearly 4 months. The recent dip in the last two sessions should be considered as a buying opportunity.
 

Indraprastha Gas Limited
 

Recommendation: Buy

Last Close: Rs 511.10
 

Initiation range: Rs 500-505
 

Target: Rs 538
 

Stop loss: Rs 485
 

After retesting its record high in November, IGL has been consolidating in a narrow range while holding strongly above the support zone of short term moving averages. It has formed a continuation pattern on the daily chart and trading on the verge of a breakout from the same. Traders shouldn’t miss this chance and accumulate in the mentioned zone.
 

Eicher Motors Limited
 

Recommendation: Buy
 

Last Close: Rs 2,460.55
 

Initiation range: Rs 2,435-2,450
 

Target: Rs 2,630
 

Stop loss: Rs 2,340
 

Eicher Motors has been witnessing profit taking for the last one month, after a strong surge from 2200 to 2690+ zone. It has formed a base above the support zone of the short-term moving average(50 EMA) on the daily chart and likely to see a gradual recovery from hereon. We believe it’s a healthy correction and traders should use this phase to create fresh long positions in the mentioned zone.

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Disclaimer: Ajit Mishra is VP - Research at Religare Broking

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