Buy OnMobile Global, IDFC: GEPL Capital

GEPL Capital has come out with its report on top trading picks OnMobile Global & Infrastructure Development Finance Company (IDFC). According to the research firm one can buy OnMobile Global with a stop loss of Rs 62 for a target of Rs 96 and buy IDFC at current market price as well as on decline with a stop loss of Rs 93 for a target of Rs 113.

OnMobile Global - Trend Reversal Onmobile Ltd was in a continuous down trend after making a top of 341 for last 30 months. The decline has came to an end after making a low of 53 mark where it has formed a double bottom type of structure which is a bullish reversal pattern from classical technical perspective. The stock was able to form higher top higher bottom formation after a period of almost thirty months indicating the end of larger degree bear market and start of a new bull run. The stock was trading in a sideways fashion from almost last nine months (off course the range is very wide 55-72). Technical parameters like OBV (On Balance Volume) as well as RSI are indicating that this sideways movement is coming to an end after a very long time. Parameters like moving averages are generating a buy signal (cross over of 13-DEMA & 50-DEMA) as well as this stock is crossing the long term moving average indicating a strong bullishness in coming time. Keeping in mind the above picture we are recommending a buy on this stock with a stop loss placed at Rs 62 for a target of Rs 96. Infrastructure Development Finance Company (IDFC) - Pullback rally IDFC has been in a structural bear market from last one year where it was falling from a high of 218 and making a low of 90.Every pullback rally has proved to be a bear market rally in this stock during the decline which has came in last one year. Technically speaking, the short and medium term picture of chart is favoring bulls while the larger degree picture is still gloomy. Weekly chart of IDFC is showing strong positive divergences of chart (where RSI is not making new low while prices are still making new lows) which is indicating that selling pressure is getting exhausted and pressure on the downward side is coming to an almost end. IDFC has a very strong support on weekly chart in the area of 86-90 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 as well as on decline with a stop loss placing at Rs 93 for a target of Rs 113. What stocks does Morgan Stanley hold? 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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