Reliance Securities recommends the following stocks:
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.
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.
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.
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