Weekly stock picks by Religare Broking: Buy Berger Paints, HDFC Life

Berger Paints has resumed the uptrend and is currently trading at its record high. Indications are in the favor of prevailing momentum to extend upside further

Berger Paints (I) Limited
 

Recommendation: Buy
 

Last Close: Rs 605.25
 

Initiation range: Rs 598-603
 

Target: Rs 625
 

Stop loss: Rs 585
 

Berger Paints has been maintaining a long term uptrend since 2010. After a slide from its record high in February 2020, it consolidated for nearly four months but the bias remained on the positive side. It has again resumed the uptrend and currently trading at its record high. Indications are in the favor of prevailing momentum to extend further thus we suggest accumulating in the mentioned range.
 

HDFC Life Insurance Company Limited
 

Recommendation: Buy
 

Last Close: Rs 582.05
 

Initiation range: Rs 580-584
 

Target: Rs 610
 

Stop loss: Rs 570
 

HDFC Life has a history of volatile swings but the volatility has subsided to some extent in recent months. It has been seeing gradual correction for the last three months after retesting the record high and tested the major support zone of the long term moving average(200 EMA) on the daily chart of late. The chart pattern combined with the positioning of indicators is pointing towards a steady rise from hereon. Traders shouldn’t miss this opportunity and go long in the given range.   
 

Hindustan Zinc Limited

Recommendation: Buy

Last Close: Rs 221.40

Initiation range: Rs 218-220

Target: Rs 240

Stop loss: Rs 208

In line with other metal counters, Hind Zinc has rebounded sharply of late, after testing the support zone of major moving averages on the daily chart. Considering the overall buoyancy in the sector, we expect the prevailing up move to continue. We suggest using any intraday dip to create fresh longs in the given range.

Manappuram Finance Limited

Recommendation: Buy

Last Close: Rs 168.35

Initiation range: Rs 163-166

Target: Rs 185

Stop loss: Rs 155

Manappuram has witnessed a breakout from a consolidation range and currently trading around the neckline area of the pattern, offering the opportunity to those who missed the chance earlier. The chart pattern and existence of multiple supportsaround 155 zone are adding to the possibility of a strong surge ahead.

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Disclaimer: Ajit Mishra is VP - Research at Religare Broking

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