Buy Colgate-Palmolive, Muthoot Finance shares; sell Infosys stock, says LKP Securities

Amid the rising selling pressure in the Indian stock markets, Rupak De, Senior Technical Analyst at LKP Securities, a domestic brokerage firm has shared three stocks- Colgate-Palmolive (India) Ltd, Muthoot Finance Ltd and Infosys Ltd - from a trading point of view. The analyst has suggested to long the first two, while he has a 'short' call on the last one. Here's what the analyst has to say about these counters:

Colgate Palmolive | Buy | Target Price: Rs 2,850-2,950 | Stop Loss: Rs 2,648

Colgate Palmolive has found support at a historical congestion level on the daily chart. The RSI is in a bullish crossover while remaining in the deeply oversold zone. Additionally, the stock has formed a bullish harami pattern on the daily timeframe. In the short term, the stock might witness a recovery. On the higher end, it could move towards Rs 2,850-2,950, while support is placed at Rs 2,648.

Muthoot Finance | Buy | Target Price: Rs 1,940-1,980 | Stop Loss: Rs 1,854

Muthoot Finance has given a breakout from the recent downwards consolidation on the daily timeframe, suggesting a rise in optimism. The RSI has come out from the oversold zone and is in a bullish crossover. Besides, the stock has moved above its 21EMA. In the short term, the stock might witness a rally. On the higher end, it could move towards Rs 1,940-1,980, while support is placed at Rs 1,854.

Infosys | Sell | Target Price: Rs 1,750 | Stop Loss: Rs 1,851

Infosys has fallen from the recent consolidation on the daily chart, suggesting a rise in bearishness. Besides, the stock price has fallen below 21EMA on the daily timeframe. The RSI is in bearish crossover and falling, indicating a weak momentum. In the short term, the stock might witness a correction. On the lower end, it could move towards Rs 1,750, while support is placed at Rs 1,851.