3 hot stock picks from Reliance Securities
V-Guard, SRF & Hindustan Zinc are on the radar of Reliance Securities
June 12, 2017 / 10:02 IST
Reliance Securities recommends the following stocks:
V-GUARD
Story continues below Advertisement
CMP: 187| RECO: BUY| TARGET: 221| STOP LOSS: 174
- V-Guard is in the strong up-trend as stock reversed after taking support of its 20-week EMA and managed to recover partial losses.
- Rise in momentum indicator-RSI with rise in price is signaling strength in the stock.
- As per the current weekly set-up, we believe that V-Guard will keep moving higher and soon it will visit the life-time-high of Rs 220.85.
- In case of any negative surprise, the stock will continue to find strong support around its 20-week EMA.
- Thus, long position can be initiated here and on dips for the target of Rs221 and with a stop loss of Rs174.

SRF
CMP: 1673| RECO: BUY| TARGET: 1900| STOP LOSS: 1580
- SRF has witnessed a sharp decline from its life-time high of Rs 1962 amidst negative divergence in key technical indicator-RSI, but later the stock took support around its 76.4 percent Fibonacci Retracement level of prior up-move (from Rs 1156 to 1962) and bounced back.
- Later, SRF managed to recover partial losses, where in case of any decline its 50-week EMA worked as a key reversal point and helped the stock to move upwards.
- In the last two instances, the stock has witnessed a jump of, on an average, 350 points after visiting its 50-week EMA.
- Two weeks ago, SRF reversed after taking support of its 50-week EMA and currently, it is on the verge of a turnaround.
- Recovery in RSI from its 50-mark is signaling strength in the stock.
- As per the current weekly set-up, we believe that stock will keep moving higher, where it will face major resistance around prior highs connecting trend line.
- In case of major decline, the stock will find support around recent swing low.
- Thus, long position can be initiated here and on dips for the target of Rs1900 and with a stop loss of Rs 1580.

HINDUSTAN ZINC
CMP: 242| RECO: BUY| TARGET: 270| STOP LOSS: 220
- Hindustan Zinc is in the strong up-trend as the stock reversed after taking support of its 38.2 percent Fibonacci Retracement level of prior multi-month up-move (from Rs 91.9 to 304.9) and also its 50-week EMA and closed the week on positive note after three weeks.
- Rise in Stochastic from its oversold zone and recovery in RSI from prior reversal point is signaling that stock is on the verge of turnaround.
- In case of any negative surprise, the stock will continue to find strong support around its key Fibonacci Retracement level and its 50-week EMA.
- However, on the higher side, major hurdles placed at Rs 270, which is coinciding with its 100-day SMA.
- Thus, the long position can be initiated here and on dips for the target of Rs 270 and with a stop loss of Rs 220.

(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.) Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!