3 hot stock picks from Reliance Securities
Oil India, Bharat Forge and Shriram Transport Finance are on the radar of Reliance Securities
Reliance Securities recommends the following stocks:
CMP: 294| RECO: BUY| TARGET: 330-340| STOP LOSS: 278
Oil India remained under pressure amidst excess liquidity and profit-booking as stock has retraced 50 percent of prior up-move (from Rs 217-364). In the last week, its long-term moving average 100-week SMA has saved the stock from extending losses and also supported a positive close.
Due to prior decline, key technical indicators-Stochastic and RSI slipped into their oversold zone, hence a rebound cannot be ruled out in the stock before it resumes the downtrend.
On the higher side, the stock will face some resistance around its moving averages, but a major hurdle observed at around Rs 330 and then at Rs 340, which is coinciding with 23.6 percent Fibonacci Retracement level of previous up-move and prior highs respectively.
In case of any negative surprise, the stock will find major support around its 9-month low.
Thus, long position can be initiated here and on dips for the target of Rs 330-340 and with a stop loss of Rs 278.
- Bharat Forge is in a strong uptrend as stock is consolidating around its short-term moving average 20-day EMA after witnessing some profit booking from its 52-week high of Rs 1221.
- Positive cross-over in key technical indicators-Stochastic and RSI from their oversold zone/ neutral level is also signaling strength in the stock.
- As per the current daily set-up, we believe that stock will utilize recent consolidation to move upward and soon it will record new 52-week high.
- On the higher side, the stock will face resistance in the range of Rs 1250-1265, which is coinciding with prior highs connecting rising trend lines.
- On the lower side, its short-term moving average will continue to work as key reversal point.
- Thus, long position can be initiated here and on dips for the target of Rs 1250-1265 and with a stop loss of Rs 1150.
- Shriram Transport Finance remained under pressure post breakdown, but later the stock reversed after taking support of intermediate rising trend line and managed to recover partial losses.
- Due to recent recovery in the stock, key technical indicators-Stochastic and RSI reversed from their oversold zone and bull market support zone respectively, which is a positive sign.
- As per the current daily set-up, we believe that stock will keep moving higher and recover prior losses.
- On the higher side, the stock will face some resistance around its moving averages, but major hurdle observed at around Rs1040, which is the prior breakdown line.
- Thus, long position can be initiated here and on dips for the target of Rs 1040 and with a stop loss of Rs 950.
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