Weekly stock recommendations by Ajit Mishra: Buy Asian Paints, Infosys

Asian Paints Limited
 

Recommendation: Buy
 

Last Close: 2,422.70
 

Initiation range: 2,410-2,420
 

Target: 2,530
 

Stop loss: 2,360
 

Asian Paints has been seeing correction for the last two months, after making a new record high at 2873.45 levels. It has formed a base around the support zone of the medium-term moving average(100 EMA) on the daily chart and likely to see a rebound now. We thus advise creating fresh longs in the mentioned zone.

Infosys Limited
 

Recommendation: Buy

Last Close: 1,345.55

Initiation range: 1,330-1,340

Target: 1,410

Stop loss: 1,300

Most IT stocks are holding strong despite the recent volatility in the market and now look upbeat for a rebound. Among the IT majors, Infosys has formed a fresh buying pivot on the daily chart, after a week-long consolidation. The chart pattern and positioning of indicators are further adding to the confirmation.

Cipla Limited
 

Recommendation: Sell March Futures

Last Close: 803.40

Initiation range:810-815

Target: 775

Stop loss: 830

We’re seeing profit-taking in most of the pharma counters and Cipla has witnessed a fresh breakdown today i.e. March 9, after hovering in a narrow range for two weeks. Further, weakness in the pharma index is pointing towards the prevailing corrective trend to continue. We thus advise creating fresh shorts in the mentioned zone.

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Note: All prices are in Rs

Disclaimer: Ajit Mishra is VP - Research at Religare Broking

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