SENSEX NIFTY
Nov 09, 2012, 07.03 AM IST | Source: Moneycontrol.com

IFCI's Diwali bets: Bajaj Auto, ICICI, Biocon, Raymond

IFCI Financial has come out with its report on Diwali picks.

IFCI Financial has come out with its report on Diwali picks.

Bajaj Auto : The stock gave a breakout from the 'rounding bottom reversal pattern' on weekly chart which is a bullish continuation pattern. Moreover, the stock has given a break out from the upper range of 1843/1850 on last Friday with steady volumes. This suggests that, Baja Auto is well prepared for an up move and it can move towards 1980/2070 levels in near term. The stock has been moving in an upward slopping channel since January 2011 on the weekly chart and stabilized above its short term 20 days & 50 days EMAs on the daily chart indicates the stock is likely to remain positive trend in short term. Based on observation of positive crossover in RSI on the weekly chart, the stock is likely to continue its uptrend in the short term. One is advised to note that, the stock has been trading well above its long term 200 weekly EMA since April 2009. This indicates the long term trend on BAJAJAUTO is likely to remain positive. However, Bajaj Auto has got the support level of 1810/1758 on the downside.

ICICI Bank : The stock has given a bullish breakout from the level of 998 on second week of September 2012 on weekly chart. After given a bullish break out on the weekly chart, the stock has been consolidating in a narrow range between 1030 and 1100 levels with good volumes. One is advised to note that the stock has been trading above its all short, medium and long term moving averages over the past eight weeks trading sessions. This indicates the stock may continue to trade its rising upward trend and if the stock breaks/closes above 1100 on weekly basis, the rising upward trend line in the near term which gives an immediate target of 1140 and 1170. Above 1170 levels we could see the stock testing 1202 levels. However, on the downside, 1030 is acting a strong short term support for ICICIBANK. Breakout of 1030 levels would change our bullish view and then 998 are possible.

Raymond : RAYMOND eventually approved the bullish breakout from the downward price channel on the weekly chart as new buying comes in. This suggesting the stock is projected the medium term target of 424/440 levels. After testing the high of 440 on April 2012, the stock has tested the upward trend line low of 327 on monthly chart. In this context, the lower level buying helped to break the downward price channel levels of 394/398 which is favorable signal for short to medium term buyers and this suggest the stock can extend the rally towards 458 levels. The 14 day RSI on daily chart is indicating that buy signal. The bullish support line continues to remain intact on the weekly chart which suggests buying pressure in the stock during dips. However, 394/380 is the short to medium term key support level for RAYMOND.

Jubilant Foodworks : The stock has been trading in upward sloping channel since Oct 2011 on the weekly chart suggesting that buyers are accumulating the stock at lower levels. Recently, after testing the low of 1232, the stock witnessed buying pressure at bottom level with huge volumes. The candlestick pattern on JUBLFOOD is suggesting that buyers are accumulating the stock at lower levels. The weekly STOCHASTIC is indicating that the prices are set to rally from the current levels in short term. The long term trend on JUBLFOOD is likely to remain uptrend as the stock has been trading above its respective long term 200 day WEMA (731) since March 2010. We expect positive trend in the counter to continue with immediate resistance placed at 1410 and 1470 levels. If it sustains this pressure, buyers would take the stock at 1540 levels in medium term scenario. On the lower side, the support will be at 1260 and 1232 levels. 

Biocon : After testing an all time high of 472, the stock has been trading within downward pricing channel since October 2012. However, the stock has just given an upside breakout from downward pricing channel recently which is indicating bullish signal. The technical oscillator, Stochastic also continue to remain in the positive zone indicating that the buying pressure can be witnessed on every dips. The short term trend on BIOCON is likely to remain strong and breakout of 301 levels would indicate that buyers may be strengthening its bullish trend and then we could see the medium term resistance level of 332/340. On the downside, the downward price channel line on BIOCON is suggesting that the stock has support at 279/272 levels. If it sustains this pressure the stock could test its medium term support level of 261. In terms of long term perspective, the stock had just started to trade above its 200 day long term WEMA (279) which is a bullish signal for long term. Moreover, breakout of 332/340 levels could see strong momentum on monthly chart and then 392/427 are possible.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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