Buy Jubilant Food, Aurobindo Pharma; sell Colgate: Pritesh Mehta

Pritesh Mehta, Head - Technicals Research at IIFL told CNBC-TV18, “Our first recommendation is a buy on Jubilant Foodworks. It has formed a classic deep crab pattern. Two weeks back, the stock was showing signs of reversal, but again, we thought that it was forming a bullish butterfly pattern. But that reversal proved to be a false one and the stock corrected. In the process it formed the last leg of this bullish deep crab pattern which is extension of the final leg of this pattern. So, I believe that this pattern has reached to a conclusion stage. Normally, whenever we talk about this pattern. We see some sort of volatility taking place which we have seen in this counter. I believe today’s pull-back of 5 percent is going to continue in the next couple of days as well. Buy Jubilant Food for a target of Rs 1,380.” “Second recommendation is buy on Aurobindo Pharma. Each and every uptrending tends to go through a period of correction after a sharp rally. We have seen this kind of sideways correction taking place in Aurobindo Pharma. Now, after being in a downtrend, in fact a sideways correction for the last three weeks, the stock has given a breakout from a falling wedge pattern on the short-term charts. I believe this stock is going to resume its uptrend on the upside. So, buy for a target of Rs 870,” he said. “Our final recommendation is a sell on Colgate Palmolive Futures. For a while, this stock was holding on its own amid the carnage in the broader markets. But in the last three weeks, it was showing signs of topping out. In fact, if you look at the charts closely, it has given a breakdown from a rectangle pattern. It was moving within this pattern for the last five weeks, but it failed to sustain. A bigger decline is in the offing. So, sell for a target of Rs 830.”