Consider buying India Cements, 3M India on dips, recommends Mehul Kothari

According to the technical analyst from Anand Rathi, India Cements can be bought closer to Rs 155 and 3M India should be bought near Rs 21,800.

3M India

BUY

Closer to: Rs 21,800

Target: Rs 24,250

Stop Loss: Rs 20,500

The stock has confirmed an inverse head and shoulder breakout above Rs 21,800 level and looks strong with a time frame of 2 – 3 weeks.

The theoretical target for the pattern comes around Rs 26,000. Thus, we advise traders to go long in 3M India near Rs 21,800 with a stop loss of Rs 20,500 for an upside target of Rs 24,250.

India Cements

BUY

Closer to: Rs 155

Target: Rs 170

Stop Loss: Rs 145

Due to oversold conditions, we witnessed some short unwinding in India Cements during the recent trading sessions.

On the weekly chart, we are observing a bullish hammer formation. There is some decent built up at 160 strike Call option and once the stock starts trading above Rs 160 we can expect short covering.

There is a possibility of pullback rally in the stock in the coming few trading sessions.

(Mehul Kothari - AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal).