Mahindra & Mahindra Limited (M&M)
Recommendation: To buy
Last closure: 786.30 rupees
Initiation range: Rs 775-782
Target: Rs 810
Stop the loss: 764 rupees
We are seeing a mixed trend within the automotive basket and M&M is poised for a short term turnaround. It has traded in a descending (bullish) wedge pattern for the past six months and is on the verge of breaking out of the same trend. We therefore recommend creating longs in the area mentioned.
Info Edge (India) Limited (Naukri)
Recommendation: To buy
Last closure: Rs 5,462.60
Initiation range: 5,420 to 5,450 rupees
Target: 5 600 rupees
Stop the loss: 5 380 rupees
Naukri (Info Edge) has traded in a wider consolidation range of Rs 4,200-5,600 over the past eight months. After retesting the upper band in July of this year, it marginally returned to the support area of the short term moving averages (20 EMA and 50 EMA) on the daily chart and formed a base. Consolidation now appears to be over and we expect steady progress from now on.
Tata Motors Limited (TaMo)
Recommendation: Sell August Futures
Last closure: Rs 294.50
Initiation range: Rs 296-298
Target: 280 rupees
Stop the loss: 308 rupees
Tata Motors has gradually declined, after its unsuccessful attempt to break through the obstacle of the previous record around Rs 360. It recently experienced a marginal rebound but was unable to break through the resistance zone of several moving averages around Rs 305 levels . He has formed a new shorting pivot and should resume the correction phase.
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Disclaimer: Ajit Mishra is Vice President – Research at Religare Broking.
http://www.religareonline.com/disclaimer
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