Sell HDFC, Ambuja Cement: GEPL Capital

According to GEPL Capital's research report dated September 04, 2012, traders can sell HDFC at Rs 722.50 with a stop-loss of Rs 740 for a possible target of Rs 690 and Ambuja Cement with a stop-loss of Rs 195 for the target price of Rs 165.

HDFC has reacted from under an important resistance of Rs 745. The RSI on the daily chart had also been diverging negatively as the stock was inching higher. However the stock has recently reacted sharply forming an evening Star pattern on the daily chart which indicates further downsides in days to come. We recommend a sell on the stock at Rs 722.50 with a stop loss of Rs 740 for an immediate downside target of Rs 690 and lower.

Ambuja Cement has recently reacted from a resistance offered by a Rising Trend Line on the weekly chart.The stock has reacted sharply in part couple of weeks and the weekly RSI has turned negative after reaching the overbought territory. There is a possibility of a bounce back which may take it to 185 where we recommend a sell with a stop loss of 195 for a potential downside target of 165 in next one to one and a half months. The 200 Day EMA is also placed near 165 which may offer support to the stock in case of declines.

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