Go long in Educomp Solution, says Chaturmohta

Go long in Educomp Solution with a stop loss below Rs 200 levels, says Ashish Chaturmohta, VP Derivates and Technicals, IIFL Private Wealth Management.

Chaturmohta told CNBC-TV18, "BGR Energy has seen an addition of almost 18% in open interest in last 3 trading sessions and if you look at, it has been continuously trading in a channel between Rs 330-350 levels and today it has given a breakout above Rs 350 levels. So I believe lot of short covering will be seen in the stock and we may see stock moving towards Rs 380-385 levels in a very short span of time. So one can initiate a long position with a stop loss below Rs 345 and look for a target of Rs 385 in next 3-4 trading sessions in BGR energy."
He further added, "Educomp Solution has seen a consistent build up of short positions in last couple of trading sessions but today the stock has given a move above Rs 200 which will force the shorts to cover their positions and we may see almost 8-10% upside from the current levels in the stock. So one can initiate a long position in Educomp with a stop loss below Rs 200 levels and look for an upside towards Rs 225-230 levels in next one week."