Buy Hitachi Home; target of Rs 1640: ICICIdirect

ICICIdirect.com's report on Hitachi Home & Life SolutionsHitachi Home and Life Solutions is emerging out of a six week base formation above its long term 200 day EMA signalling the end of the corrective phase and resumption of upward momentum. The stock provides a good entry opportunity with a favourable reward/risk setup to ride the next up move.The corrective decline from the life-time high of Rs 1742  got anchored precisely near the key value area of Rs 1250 being the confluence of the long term rising 200 day EMA and 50% retracement of the entire 2015 rally round Rs 1260. Value buying at the key support led to a base formation over the last six weeks highlighting accumulation by stronger hands ahead of the impending reversal.The up move in the current week’s trade has seen the stock pierce through the overhead trend line, which had provided a stiff resistance in the entire corrective decline since June 2015 till date. Following the bullish resolution, we expect the stock to resume its uptrend and retrace the June-August correction by at least 80%, which opens upsides towards Rs 1640 in the coming months.Strategy: Buy Hitachi Home and Life Solutions in the range of Rs 1380-1400 for a target of Rs 1640 with a stop loss below Rs 1280 on a closing basis.

Read More