Here’s why Mehul Kothari recommends buying Hindustan Petroleum, V-Guard

BUY HINDPETRO | TARGET: Rs 274 | STOP LOSS: Rs 300

Despite the massive selloff in the markets, the stock was trading in green during Monday’s session. It is hovering exactly above the placement of its 200 DSMA and DEMA. Also, we are witnessing multiple bottom near 274 mark which indicates a possibility of bounce from here on. Thus, traders can buy the stock near 284 – 282 mark with a stop loss of 274 for upside target of 300 in 1 – 2 weeks.

BUY VGUARD | TARGET: Rs 210 | STOP LOSS: Rs 236

The stock has recently corrected from the top of 275 towards the recent bottom of 210 without any meaningful bounce. Thus, it has entered an oversold zone. The stock is at a support of ICHIMOKU indicator in daily weekly and monthly time frame. This indicates that it is poised for a strong bounce. Thus, we advise traders to accumulate the stock in the range of 222 – 218 with a stop loss of 210 for an upside target of 236 in coming 1 – 2 weeks.

Disclaimer: Mehul Kothari – AVP – Technical Research, Anand Rathi Shares & Stock Brokers.Views own

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