Moneycontrol
Jun 19, 2017 09:11 AM IST | Source: Moneycontrol.com

3 hot stock picks from Reliance Securities

Oil India, Bharat Forge and Shriram Transport Finance are on the radar of Reliance Securities

3 hot stock picks from Reliance Securities

Reliance Securities recommends the following stocks:

OIL INDIA

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.

Oil India-Rsec

BHARAT FORGE

CMP: 1183| RECO: BUY| TARGET: 1250-1265| STOP LOSS: 1150

  • 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.


Bharat Forge-R Sec

SHRIRAM TRANSPORT FINANCE

CMP: 984| RECO: BUY| TARGET: 1040| STOP LOSS: 950

  • 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.


 

  • Shriram Transport Finance R sec

  • Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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