Here's why Mehul Kothari is bullish on Maruti Suzuki, NOCIL

According to the technical analyst from Anand Rathi, Maruti is witnessing a formation of double bottom near Rs 7,600 mark, while NOCIL has seen a breakout above Rs 265 level.

BUY

NOCIL

TARGET: Rs 290

STOP LOSS: Rs 250

Since Nov 2021, NOCIL started trading below Rs 265 mark and during this time frame it made several attempts to break above Rs 265. After failing for 2 – 3 times, the stock has finally managed to close above Rs 265 mark.

The price action was supported with heavy volumes which indicates that the breakout could be genuine. Thus, traders can accumulate the stock on dips in the range of Rs 266 - Rs 262 with a stop loss of Rs 250 for an upside target of Rs 290 in the coming 2 – 3 weeks.

BUY

MARUTI

TARGET: Rs 7,850

STOP LOSS: Rs 7,550

MARUTI has shown quiet resilience during the ongoing uncertainty in the market. At this point in time, the stock is hovering above the support of its 200-day moving average. 

We are witnessing a double bottom kind of formation near Rs 7,600 mark. The price action indicates possibility of bounce in the stock. Thus we advise traders to go long in the stock in the range of Rs 7,700 - Rs 7,600 with a stop loss of Rs 7,550 for an upside target of Rs 7,850 in 1 – 2 weeks.

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