Trading ideas by Ajit Mishra of Religare Broking: Buy Divi's Labs, Nalco

Divi's Laboratories

Recommendation: Buy
Last Close: Rs 3,908.95
Initiation range: Rs 3,900-3920
Target: Rs 4,100

Stop loss: Rs 3,790

We are seeing consistent buying in the pharma space, and Divi's Lab witnessed a fresh breakout from a consolidation range on April 27. The chart pattern and positioning of indicators are pointing towards a strong surge ahead. Traders shouldn’t miss this opportunity and must create fresh longs in the mentioned zone.

Motherson Sumi Systems

Recommendation: Buy
Last Close: Rs 215.65
Initiation range: Rs 214-217
Target: Rs 240
Stop loss: Rs 203

Motherson Sumi has been consolidating in a range for the last one month or so while holding strongly above the support zone of short-term moving average (50 EMA) on the daily chart. Indications are in the favor of a breakout in the near term. We thus suggest utilising this phase to accumulate the stock in the given range.

National Aluminium Company

Recommendation: Buy
Last Close: Rs 60.9
Initiation range: Rs 61-61.5
Target: Rs 68
Stop loss: Rs 57

Most metal stocks are trading at their record highs and showing no sign of slowing down. Among the counters, National Aluminium is trading on the verge of a breakout from a consolidation range. The recent buoyancy in the metal space combined with the strong uptick in the volumes is adding to the positivity. We advise creating fresh longs in the mentioned zone.

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Disclaimer: Ajit Mishra is VP - Research at Religare Broking.

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