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.


Note: All prices are in Rs

Disclaimer: Ajit Mishra is VP – Research at Religare Broking


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