Here’s Why Vinay Rajani Recommends Buying Godrej Consumer, Finolex Cables




Clever view

From the day’s high at 16,025, the Nifty has plunged about 240 points to 15,785 during intraday trading on Tuesday.

The Nifty finally ended the session with a bearish shooting star candlestick pattern on the daily chart. However, the upper and lower upper pattern is intact on the daily Nifty chart.

As long as the Nifty remains above 15,704, there is hope for an upside move to 16,173. On the other hand, a breakout of 15,500 would accelerate the downward momentum, and this should be kept as a stop for all long positions.


Godrej Consumer


TO BUY

Last closing: Rs 832.25

Objectives: Rs 885, Rs 940

Stop Loss: Rs 790

The stock broke out of its bullish inverted head and shoulders pattern on the daily line chart. The break in prices is accompanied by an increase in volumes.

The stock is trading above its 20 and 50 day EMA. The stock price also broke away from the descending trendline on the weekly chart. The upper and lower upper formation on the daily chart is visible.

The FMCG sector started to outperform. Indicators and oscillators turned bullish, both on the daily and weekly charts.

The action can be purchased in two tranches, one at the CMP and the second at Rs 800, for targets of Rs 885 and Rs 940, keeping a stop loss at Rs 790.


Finolex cables


TO BUY

Last close: Rs 394.10

Objectives: Rs 420, Rs 449

Stop Loss: Rs 375

The title came out of the consolidation it had held for a week. The stock jumped over 4% with an increase in volume on July 05, 2022.

The stock broke above the crucial 50-day EMA resistance. Indicators and oscillators showed strength on the daily and weekly charts.

The share can be bought in two tranches, one at the CMP and the second at Rs 380, for targets of Rs 420 and Rs 449, keeping a stop loss at Rs 375.


(Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC Securities. Opinions expressed are personal).

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