"Reliance Power after consolidating in the triangle pattern has finally signaled a breakout above Rs114 and has been holding firm above the breakout levels. On Monday trading session a bullish crossover was witnessed of 10 DMA and 20 DMA which corroborates resumption of buying momentum in the counter. The only concern comes from volumes which so far has been on the lower side and also raises probability of stock price retesting the key support levels of Rs 115. We advise buying stock in the range of Rs 114-115 with stop loss of Rs 112 for target of Rs 122. Duration 5 days.
"Educomp on the daily chart has generated trend reversal after formation of 'falling wedge' and close above Rs 401 with good volumes. The stock has already went through correction phase from Rs 493 to a low of Rs 382 and after formation of 'falling wedge' the stage is set for prices to bounce back towards Rs430 in the medium term. A positive crossover on daily RSI and a breakout from rounding bottom formation reinforces strength in the counter. We advise buying the stock above Rs 409 with stop loss of Rs 403 for target of Rs 425.
Derivative Strategies:
Short ICICI Bank July Future in range of Rs 1109-1112 for the target price of Rs 1082 with a stop loss placed at Rs 1124. Lot size: 250 Remarks: Net maximum profit of Rs 7,500 and net maximum loss of Rs 3,750.
Long IndusInd Bank July Future in range of Rs 279-280 for the target price of Rs 289 and stop loss placed at Rs 275. Lot size: 1000 Remarks: Net maximum profit of Rs 10,000 and net maximum loss of Rs 5,000.
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