Buy Polaris Financial; target Rs 158: Way2Wealth
Way2Wealth is bullish on Polaris Financial Technology and has recommended buy rating on the stock with a target price of Rs 158 in its research report dated August 06, 2013.
August 06, 2013 / 18:42 IST
Way2Wealth report on Polaris Financial Technology
"Polaris Financial Technology seems to have completed the pennant with almost a double bottom and from there it has bounced back quite sharply. Today, the stock has surpassed it short term hurdle of 200 DMA i.e. 116 levels approximately. Above this level there is a small hurdle of a downtrend line which when surpassed will take the prices to 138 levels directly i.e. towards the upper end of the pennant. Currently, the pullback is considered just as a retracement of the previous fall. Hence our target is just below the 61.8% mark of the fall which comes to 165 levels, however, we have kept a target of 158 as there is a small swing resistance just before that level. Above 138 levels, it will lead to a breakout from the pennant which will increase the momentum on the upside. The recent swing low of 97.20 is now the crucial support, so we have kept a stop loss of 97 for the long trades.""The momentum indicator MACD is quite interesting on charts. First of all, it shows the positive divergence as the prices were making lower bottoms, whereas, the MACD has forming higher bottoms. Now, it has just provided a buy signal from the lower end of the triangular pattern. This further confirms that the trend has reversed from down to up and these evidences from the momentum increases the probability of our bias."Investment Strategy:
Buy Polaris Financial Technology at CMP Rs 118 for the target of Rs 158 with a stop loss of Rs 97.
Risk: Reward = 1: 9
Risk: 118 – 97 = 21
Reward: 158-118 = 40Disclaimer: 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. 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
