Orchid Chemicals may test Rs 58-59: Pritesh Mehta

Pritesh Mehta, Senior Technical Analyst at IIFL told CNBC-TV18, "In spite of today's profit booking the buy list is larger, because I am assuming that the market is in a dip rather than a change of trend and with the midcap index on the verge of breaking out from 200-day weekly moving average, we expect the momentum to continue for the midcap space."

"Our first pick is Orchid Chemicals and Pharmaceuticals. It now appears that the stock is consolidating at lower levels, but in fact it is showing us bullish patterns. We can see a strong ascending triangle breakout coming in. Above Rs 54 the stock can hit the levels of Rs 58-59 in next couple of days, so definitely this stock has to be kept on radar," he added.
"Second pick is Gujarat Narmada Valley Fertilizers Company (GNFC). This stock has confirmed a base building exercise. It built a base between Rs 59 and Rs 62 for last couple of weeks and now it appears that it is giving a rounding bottom breakout. It tells us that the decline in the stock price is over and it is going to begun a new uptrend. Buy above Rs 64 for a target of Rs 68."
"Third pick is Brigade Enterprise. The stock is on the verge of breaking out from a downward sloping channel. Recently the stock has been making lower highs, which shows that the stock is bottoming out. Buy above Rs 59 for a target of 64." Disclosure: He may have recommended above stocks to his clients, but has no personal holdings.