Chandan Taparia of MOFSL recommends buying these three stocks on Oct 16 | News on Markets

Buy HAL CMP: Rs 4,575 | Stop Loss: Rs 4,430 | Target: Rs 4,850

 

A Double Bottom pattern has appeared on the daily chart with an upward breakout which suggest a possible trend reversal. Bounce back is visible from lower zones across defence space after underperformance of past four months.  The MACD indicator has given a bullish crossover which supports the upward momentum.

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Buy OBEROIRLTY CMP: Rs 2,028 | Stop Loss: Rs 1,970 | Target: Rs 2,150         

 

Stock has broken out of a consolidation zone and is headed up with higher-than-average buying volumes. Buying was visible across the realty space which may support the rally. The RSI indicator has turned up which confirms the bullish momentum.

A rounding bottom pattern has formed on the daily time frame which suggests a trend reversal to bullish. It is respecting 20 DEMA and inching higher. The Stochastic indicator has bounced up from the oversold zones and is headed up which may confirm the change in trend.

(Disclaimer: Chandan Taparia is senior vice president of equity derivatives & technicals, wealth management at Motilal Oswal Financial Services Ltd. Views expressed are his own.)