Stocks to Buy: Vinay Rajani of HDFC Sec picks these two shares for Oct 3

Coforge is placed near its all-time high and has been outperforming the IT sector

Nifty extended its fall to a third session on Oct 01. Cash market volumes on the NSE were about 11% lower compared to the previous session. Broad market indices ended in the positive even as the advance decline ratio rose to 1.45:1. Nifty formed a small candle on Oct 01 with a large upper shadow.

After a large fall in the previous session, Nifty seems to be consolidating and did not see a large follow through selling. Nifty could face resistance from the 25956-26011 band while 25446 could offer support in the near term.

Buy Coforge(Rs 7,115): | Target Rs. 7,600 | Stop-loss Rs 6,800

 

Stock price has broken out from last three week’s narrow consolidation. Stock is placed near its all-time high and has been outperforming the IT sector. Stock is trading above all important moving averages, indicating bullish trend on all time frames. Indicators and oscillators have turned bullish on weekly charts.

Buy Coromandel International (Rs 1,726): | Target Rs. 1,860| Stop-loss Rs 1,636

Stock has broken out from bullish “Flag” pattern on the weekly chart with jump in volumes. Stock price has reclaimed its level above its 50 days EMA. Stock is trading above all important moving averages, indicating bullish trend on all time frames. Indicators and oscillators have turned bullish on daily and weekly chart.

Fertilizer and chemical sector have started performing well.

(Vinay Rajani, senior technical and derivative analyst at HDFC Securities. Views expressed are his own.)