L&T Infotech, Varun Beverages among 3 top picks by Yes Securities

A failure to sustain above 11,120 can trigger minor profit booking dragging the index lower to 11,000-10,840.

The Nifty50 has successfully broken out from an ascending triangle pattern neckline following weeks of consolidation resuming the uptrend. Moreover, the breakout is backed by healthy volumes indicating higher levels in the coming trading sessions.

A sustained move above 11,120, which happens to be the 61.8 percent Fibonacci retracement level, will extend the rise towards 11220-11400.

However, a failure to sustain above 11,120 can trigger minor profit booking dragging the index lower to 11,000-10,840. The Relative Strength Index (RSI) has also closed above 60, confirming the strength building up in the index.

Larsen & Toubro Infotech: Buy| LTP: Rs 1,849| Target: Rs 1,970-2,060| Stop loss: Rs 1,750| Upside: 7-11 percent

On the daily chart, Larsen & Toubro Infotech Ltd. has broken out from a narrow channel pattern backed by good volumes indicating a resumption of the bull trend.

Further, a sustained trade above Rs 1,855 will extend the up move taking the stock to Rs 1,970-2,060. Moreover, it has taken support at its major moving averages i.e. 50-DMA, 100-DMA and 200-DMA and has turned northwards affirming bullishness in the stock.

The RSI has formed a positive reversal indicating higher levels in the coming trading sessions. The stock can be bought in the range of Rs 1,845-1,850 for targets of Rs 1,970-2,060, keeping a stop loss at Rs 1,750.

Varun Beverages: Buy| LTP: Rs 835| Target: Rs 880-900| Stop loss: Rs 800| Upside: 5-8 percent

On the daily chart, Varun Beverages is on the verge of a breakout from an ascending triangle pattern neckline placed at Rs 850. Sustained trade above Rs 850 with healthy volumes will trigger a bullish breakout taking the stock higher to Rs 880-900.

Further, the stock continues to form higher highs and higher lows after taking support at the 200-DMA affirming strong bull dominance. Moreover, bull candles are backed by healthy volumes confirming buying in the stock.

The RSI has turned upwards after taking support at 50-level suggesting higher levels in the stock. Buy Varun Beverages in the range of Rs 833-837 for targets of Rs 880-900, and keep a stop loss below Rs 800.

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