Colgate, Bajaj Auto, Tech Mahindra shares: What should positional traders do with these stocks? Check target price, stoploss

Stocks to buy: The Indian market declined nearly one per cent in early trade on Monday amid weak global cues. The broader Nifty 50 slipped below 17,600, while the Sensex declined by more than 500 points profit taking hit the market after a non-stop rally in the past two months.  

Following benchmarks, Nifty midcap and small cap too dropped around one per cent each. 

The market witnessed massive profit booking across sectors as the majority of the sectoral indices, barring FMCG, declined by over one per cent in the morning trade on Monday.  

Certain stocks came into focus on Friday. These stocks were Colgate, Bajaj Auto and Tech Mahindra.  

Here is what Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, suggests investors should do with these stocks 

COLPAL: BUY, CMP 1567.2, TARGET 1680, SL 1510   

After a short-term correction, the stock is trading near important retracement support level. It is also trading near 50-day SMA and the higher bottom formation indicating strong possibility of trend reversal from the current levels.  Looking at the overall pattern, it offers a buying opportunity for the positional traders with a decent risk-reward ratio. The trend reversal move is likely to continue up to 1680.  

BAJAJ-AUTO: BUY, CMP 4074.55, TARGET 4360, SL 3930 

In this month so far, the stock rallied over 5 percent. Post short term correction, the stock took the support near 20-day SMA (simple Moving Average) and reversed. After a reversal, it is consistently holding higher bottom formation.  For the trend following traders now, 3930 could be the key level to watch if stock manages to trade above the same, then we can expect uptrend continuation wave up to 4360. 

TECHM: BUY, CMP 1102.8, TARGET 1180, SL 1065  

After a long correction, on daily and weekly charts, the stock is consistently forming a higher bottom formation, which is broadly positive.  Currently, the stock is comfortably trading above 20 and 50-day SMA (Simple Moving Average) and the texture of the chart indicates the uptrend formation Is likely to continue in the near future. Unless it trading below 1065, positional traders retain an optimistic stance and look for a target of 1180. Fresh buying can be consider now and on dips, if any, between 1105 and 1090 levels with a stop loss below 1065. 

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)