Stocks to Buy: Here's why HDFC Securities recommends BDL, Escorts

On the broader market outlook, Vinay Rajani technical & derivative analyst of HDFC Securities says the Nifty has reached crucial support zone of 22,000 - 21,000 on the charts.

After registering a fall of more than 680 points from an all time high of 22,775, the Nifty has reached the crucial support zone of 22,000-22,100, derived from 50-DEMA and upward sloping trend line on the weekly chart.

A level below 22,000 could drag Nifty towards next support of 21,700. On the higher side 22,400-22,500 band is expected to offer resistance in the Nifty.

BUY

Escorts

Target: Rs 3,215

Stop-loss: Rs 2,950

The stock price has broken out from downward sloping trend line on the weekly chart with jump in volumes. Primary trend has been bullish as stock has been forming higher tops and higher bottoms on the weekly charts. The stock is placed above all important moving averages, which indicates bullish trend on all time frames.

 

Buy

BDL

Target: Rs 1,980

Stop-loss: Rs 1,725

The stock price has broken out from the consolidation which held for previous four months. Indicators and oscillators have turned bullish on short term charts. The stock is placed above all important moving averages, which indicates bullish trend on all time frames. Defense stocks have been showing strength for last couple of weeks.

(Vinay Rajani, CMT, Senior Technical & Derivative Analyst, HDFC Securities. Views expressed are personal).