Buy Bajaj Auto Limited
Last close: Rs 3,678.35
Initiation range: Rs 3,650-3,665
Target: Rs 3,770
Stop loss: Rs 3,600
Within the auto space, Bajaj Auto has witnessed decent correction from its record high and is currently hovering around the support zone of medium-term moving average(100 EMA) on the daily chart. The oversold positions combined with the existense of support are pointing towards the possibility of a rebound soon. Traders shouldn’t miss this opportunity and create fresh longs in the mentioned zone.
Buy Britannia Industries Limited
Last close: Rs 3,568.40
Initiation range: Rs 3,535-3,550
Target: Rs 3,740
Stop loss: Rs 3,460
BRITANNIA has been seeing correction for the last nine months, after making a new record high at 3,940.44, in July 2020. It has recently tested the monthly support zone around 3,300 and is witnessing a gradual rebound. Indications are in the favor of prevailing recovery to continue and possibly the resumption of the uptrend too. We, thus, suggest traders to initiate fresh long positions in the given range.
Sell April Futures of Motherson Sumi Systems Limited
Last close: Rs 212.50
Initiation range: Rs 212-214
Target: Rs 197
Stop loss: Rs 221
MOTHERSUMI has witnessed a breakdown from a distribution pattern on the daily chart and is likely to test the support zone of the short-term moving average(50 EMA) soon. The prevailing corrective phase in the benchmark combined with the mixed indication from the auto index is further adding to the negativity. We thus advise creating fresh shorts in the given range.
Disclaimer: Ajit Mishra is VP – Research at Religare Broking