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Top trading ideas by Mehul Kothari: Buy Escorts, Maruti Suzuki

Maruti's stock has sneaked below its 200 DEMA but, on the weekly scale, it has tested its 200 week EMA which is a much stronger support

Topics
Markets | Market technicals | Anand Rathi

Mehul Kothari  |  Mumbai 

Markets, Buy, Sell, Stocks
Photo: Shutterstock.com

BUY ESCORTS | TARGET: Rs 1,190 | STOP LOSS: Rs 1,070

The stock ESCORTS has corrected from the top of over 1,400 to the recent bottom near 1,100-mark. This has brought the stock under oversold zone in smaller time frame. At this juncture, the stock is trading near the potential reversal zone of a bullish harmonic patterns called 'Butterfly'. For a medium-term trader, this could be a perfect price to go long with a time frame of 2 – 4 weeks. Thus; traders are advised to buy the stock in the range of 1,120 - 1,100 with a stop loss of 1,070 for the upside potential target of 1,190 in 2 – 4 weeks.

BUY PFC | TARGET: Rs 125 | STOP LOSS: Rs 96

The stock PFC underwent a significant correction of over 20 per cent from the top of 140. At this juncture, it is hovering at the support of 200 DSMA. In addition; the stock is currently trading near the potential reversal zone of a bullish harmonic patterns called 'Shark'. Traders are advised to buy the stock in the range of 108 - 104 with a stop loss of 96 for the upside potential target of 125 in 2 – 4 weeks.

BUY MARUTI | TARGET: Rs 7,200 | STOP LOSS: Rs 6,350

The four-wheeler giant had been under a strong corrective mode since quite some time. Now, the stock has sneaked below its 200 DEMA but, on the weekly scale, it has tested its 200 week’s EMA which is a much stronger support. This support coincides with the Ichimoku cloud support. In addition; we are witnessing a bullish NEN STAR harmonic pattern in MARUTI which suggests a possibility of good risk reward to go long. Traders are advised to buy the stock near 6,600 with a stop loss of 6,350 for the upside potential target of 7,200 in 3 – 5 weeks.


Disclaimer: Mehul Kothari is AVP – Technical Research at Shares & Stock Brokers. Views are personal.

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First Published: Tue, May 04 2021. 08:20 IST
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