Two auto stocks that Vaishali Parekh believes can be good bets

Parekh suggests buying and accumulating M&M stock for an upside target of Rs 820-850, keeping the stop loss of Rs 710

BUY BAJAJ AUTO | CMP: Rs 3,829 | TARGET: Rs 4,300 | STOP LOSS: Rs 3,650

The stock has corrected well from the peak level of Rs 4,300 and is currently near the support zone of Rs 3,730. It has indicated a positive candle to improve the bias. The RSI suggests a trend reversal and potential to carry on with positive bias in the coming days. With the chart looking attractive, we suggest to buy and accumulate this stock for an upside target of Rs 4,300, keeping a stop loss of Rs 3,650. CLICK HERE FOR CHART

BUY M&M  | CMP: Rs 743 | TARGET: Rs 820-850 | STOP LOSS: Rs 710

The stock has witnessed a gradual correction in recent times and has bottomed out near Rs 720 level, taking support, indicating a positive bullish candle pattern in the daily chart to improve the bias. The RSI indicator has also shown a trend reversal from the oversold zone and signalled a buy with the potential to rise further upside in the coming days. We suggest to buy and accumulate this stock for an upside target of Rs 820-850, keeping the stop loss of Rs 710. CLICK HERE FOR CHART

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Disclaimer: The author is a technical analyst with Prabhudas Lilladher. She may have positions in one or more stocks mentioned above. Views are personal.