Chart check: Oracle Financial, IDFC top trading picks

GEPL Capital has come out with its report on top trading picks. Oracle Financial & IDFC remains top picks.

Oracle Financial (OFSS) was able to give a close above its 200DSMA after a long time. The high volumes indicate the end of the downtrend which started from June 2011. The stock is trading in a sideways fashion from the last two and half years (wide range of 2500-1900). The technical parameters like OBV (On Balance Volume) and RSI indicate that this sideways movement is coming to an end after a long time. Parameters like moving averages generate a buy signal (cross over of 13-DEMA & 50-DEMA) and this stock is crossing the long term moving average indicating a strong bullishness in coming time. Keeping in mind the above picture we recommend a buy on this stock with a stop loss of 1980 for a target of 2250. IDFC has been in a structural bear market from last year where it has fallen from a high of 218 and making a low of 101.Every pullback rally has proved to be a bear market rally in this stock during the decline which has came in last year. On the IDFC technical charts the short and medium term are favoring bulls while the longer term is still gloomy. The weekly chart of IDFC is showing strong positive divergences (where RSI is not making new low while prices are still making new lows) which indicates that selling pressure is getting exhausted and pressure on the downward side is coming to an end. IDFC has a very strong support on weekly chart in the gap area of 98-100 which indicates that a strong rally should emerge from here or the fall should halt in this area. It has also crossed its short term moving average with above average volume generating a short term buy signal on chart. Seeing all this, one can say that IDFC is a buy at current market price and on declines with a stop loss of 100 for a target of 128-130. 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. To read the full report click on the attachment

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