The latest analysis and commentary by stock market guru Chandan Taparia of Motilal Oswal Securities on what is moving the markets today. Check out his top stock recommendations.
He spoke at length about Hero MotoCorp, Jubilant Foodworks, Larsen and Toubro.
Speaking about individual stocks, Taparia said, “We have selected to go long on Hero MotoCorp because the stock has seen built up of long position and also given a breakout from its pole and flag pattern. So, expecting the positive momentum in Hero MotoCorp towards Rs 3,500, one can buy with a stop loss of Rs 3,310 levels.”
“Second trade is buy on Jubilant Foodworks. This stock has formed a cup and handle formation on the daily scale and surpassed its 50 day exponential moving average. The stock is forming higher highs, higher lows. We have seen the built up of long position by around 8-10 percent in last two to three trading sessions and surpassed the immediate hurdle of Rs 1,345-1,350 levels. Because of that momentum could be there towards Rs 1,400-1,410 levels, one can buy with a stop loss of Rs 1,320,” he added.
On Larsen and Toubro (L&T), Taparia said, “Buy L&T. L&T is slowly heading towards lifetime high territory. The stock is quite strong and entering into the lifetime territory and momentum is clearly visible. We have seen jump in the trading volume and delivery volume is also marked in the counter which indicates that fresh leg of rally cannot be ruled out. So, we are recommending to go long with bull call spread. Suggestion is to buy one lot of 1,440 Call, sell one lot of Rs 1,480 Call, in the entire spread one has to pay the premium of Rs 16, reward is Rs 24. So 1:1.5 risk reward ratio. We are expecting L&T to move towards Rs 1,475 to Rs 1,480 zones.”Disclaimer:
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