Technical calls by Religare Broking: Buy Hero MotoCorp, Marico and IGL

Hero MotoCorp Limited


Recommendation: Buy


Last Close: Rs 2,657.20


Initiation range: Rs 2,635 - Rs 2,645


Target: Rs 2,775


Stop loss: Rs 2,580


Like other auto majors, Hero MotoCorp has been underperforming for last one year. It has recently tested the monthly support zone around Rs 2,500 and rebounding gradually since then. The positive divergence between the price chart and relative strength index (RSI) oscillator is indicating possible reversal ahead. We advise initiating fresh longs in the given range.


Marico Limited


Recommendation: Buy


Last Close: Rs 361.35


Initiation range: Rs 360-362


Target: Rs 382


Stop loss: Rs 350


Marico has formed a fresh buying pivot of late, after hovering in a narrow range around its support zone of multiple moving averages on daily chart. The chart pattern and confirmation indicators are pointing towards possibility of fresh breakout ahead. We advise initiating fresh long positions as per the mentioned zone.


Indraprastha Gas Limited


Recommendation: Buy


Last Close: Rs 307.05


Initiation range: Rs 307-311


Target: Rs 330


Stop loss: Rs 298


Indraprastha Gas (IGL) has been gradually inching higher and heading towards its record high, after testing its crucial support zone around Rs 215. After a marginal dip, it is offering fresh buying opportunity to those who had missed that chance earlier. We advise accumulating as per the mentioned zone.


Tata Steel Limited


Recommendation: Sell May Futures


Last Close: Rs 473.40


Initiation range: Rs 477-480


Target: Rs 458


Stop loss: Rs 486


Mostly, metal counters are reeling under pressure and Tata Steel is no different. After the sharp decline, it witnessed marginal bounce but couldn’t surpass the major hurdle of 200-EMA (exponential moving average) on the weekly chart and drifted lower. Indications are in the favour of further decline in near future. We advise initiating fresh shorts as per the mentioned levels. 


Disclaimer: The brokerage may have positions in any or all the stocks mentioned above.