Buy Sesa Goa, Exide Ind with short term: Way2Wealth
Way2Wealth has come out with its special report on Sesa Goa & Exide Industries. "Short term opportunity has seen in both the stocks, so one can buy Sesa Goa October futures above Rs 193.50 and Exide Industries (cash) above Rs Rs 134," advises the research firm.
September 26, 2013 / 13:00 IST
Way2Wealth's special report on Sesa Goa & Exide Industries
Sesa GoaThe stock has provided a breakout from the symmetrical triangle formed in its wave 4, so now wave 5 up is expected. The minimum target on the upside comes to 220 levels, whereas, the support is rising trend line of the triangle. The Bollinger bands on the daily charts too have narrowed, so it is expected to expand from hereon. The stock is trading well above its short term and long term averages i.e. above 20 DMA, 50 DMA and 200 DMA. The move after the triangle is generally wave 5 or wave C; in this case it seems to be wave 5 up. The alternation guideline is also well met as wave 2 had retraced 78.6 percent of wave 1, whereas, wave 4 has retraced 38.2 percent of wave 3. Also, wave 2 was a zigzag and wave 4 is a triangle. The momentum indicator MACD on the weekly charts is well in buy mode and now it has also moved above the zero reference line thus confirming the uptrend.Investment Strategy:
Buy Sesagoa October futures above 193.50 for the target of 220 and a stop loss of 182.90.
Risk: Reward = 1:2.5
Risk: 193.50 – 182.90 = 10.60 * 2000 = 21200
Reward: 220 – 193.50 = 53000Exide IndustriesThe stock has formed a classic diamond bottom reversal pattern and the breakout on the upside will be confirmed above its previous swing high of 133.75. Once, it breaks out then it should not fall back into the pattern, hence its previous swing low 128 becomes an important support which is also our stop loss for the long call. The Bollinger bands have been trading sideways in this entire diamond pattern formation but now, once it provides a breakout above its previous swing high of 133.75 then it is expected to trend upwards. The stock is also trading above its 200 DMA which is a positive sign for the bulls going ahead. The momentum indicator MACD is well into buy mode and it has too formed a triangular pattern on its daily charts which is generally a continuation pattern. Hence, with the price breakout, the daily MACD too, is expected to provide an upside breakout. The weekly MACD is well into buy mode which is a further confirmation of a medium term trend.Investment Strategy:
Buy Exide Industries (cash) above Rs 134 for the target of Rs 151 with a stop loss of Rs 128
Risk: Reward = 1:2.83
Risk: 134 – 128 = 6
Reward: 154 – 134 = 17Disclaimer: 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. 
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