IIFL is bullish on McLeod Russel and has recommended buy rating on the stock with a target of Rs 192, in its June 15, 2010 research report.
"McLeod Russel has signaled a breakout after stock prices penetrated falling resistance line of Rs 179 and closed above the Rs 180 mark. Such a move is likely to pause short term downtrend in the stock and provide decent scope for bounce from current levels to Rs 200 which also coincides with crossover point of 50DMA and 200DMA.Three white soldiers on daily candlestick chart along with stock price closing above its short term moving average of 10DMA affirms strength in the pullback. A variation of triple bottom in RSI reinstates that though prices were heading lower, failure of RSI to make significant lows was as indication that downward momentum was faltering out. We would advise to buy stock at current price of Rs 182 with stop loss of Rs 178 for target of Rs 192," says IIFL research report.
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