Sell Lupin on rallies; Buy Maruti on dips: GEPL Capital

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Sell Lupin on rallies; Buy Maruti on dips: GEPL Capital

GEPL Capital has come out with its report on top trading picks. The research firm has recommended to sell Lupin on rallies and buy Maruti Suzuki India on dips in its January 23, 2012 research report.

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RELATED NEWS Hold Hero MotoCorp; target Rs 2085: Way2Wealth Accumulate Syndicate Bank; target Rs 99: Angel Broking Sell HDFC Bank; target Rs 471: Dolat Capital ALSO READ See previous views by GEPL Capital See what other Experts & Brokerages are saying about Lupin See messages about Lupin Lupin BSE | NSE 01/06/12 Are Mutual Funds betting on Lupin? Other Stocks in this news Maruti Suzuki India |

GEPL Capital has come out with its report on top trading picks. The research firm has recommended to sell Lupin on rallies and buy Maruti Suzuki India on dips in its  January 23, 2012 research report.

Lupin  - Sell on rallies

This stock was able to give some relief rally after witnessing a massive fall from price level of 480-490 to directly up to 408-410 zone. The rally from the low of 408 has emerged on a very low volume raising the question about its sustenance on the higher side. Momentum indicators on daily as well as on weekly charts are not showing any major strength in this rally. Price pattern on daily chart is indicating that ongoing up move is going to face major supply in the area of 443-449(50DEMA-443, 200SMA-449).The stock is trading well below its long term moving average (200DMSA-449) indicating that the larger degree trend is still very much down. Technical structure of this stock seems to be very weak and one can go short in this counter on rallies around 443-449 with a stop loss placing at 460 for a target of 408.

Maruti Suzuki India - Buy on dips

Maruti has been in a strong downtrend since last two years from its all time high of 1738.The rally which has started from the low of 433 has topped out around 1738 after a consistent rise of almost 10 months. Prices have retraced almost 61.8% retracement (Fibonacci retracement ratio) in last two years and have come down to new two years low of 900. Talking about the daily as well as weekly chart, Maruti has formed double bottom as well as triangle breakout type of pattern around the price level of 975 and from there a sharp up move has been witnessed. On daily chart, this counter has generated a buy signal on moving average crossover (13-DEMA-50-DEMA) as well as it has given a close above its long term moving average(200DSMA-1123) that too with extraordinary volumes indicating a larger degree trend reversal. Keeping the above technical picture in mind one can go long in Maruti on dips around the price range of 1120-1130 with a stop loss placing at 1070 for a target of 1278.

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To read the full report click on the attachment