Buy Century Textiles, target Rs 1060: Vikas Jain

Vikas Jain Reliance Securities

Century Textiles has formed a bullish reversal pattern (i.e. Piercing Line Pattern) around 50 percent Fibonacci Retracement level of prior up-move (Rs 398-1471), signaling near-term turnaround. Reversal in the key technical indicators-RSI and Stochastic from their oversold zone are also coinciding with our view.

Though short-term trend is negative in the stock, at least a corrective bounce back cannot be ruled out in the near term. Thus, long position can be initiated here for the target of Rs 1,060-1,100 with a stop loss of Rs 880.

Disclaimer: The author is a senior research analyst at Reliance Securities. The views and investment tips expressed by investment experts on Moneycontrol are their own and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.