Hot stocks: Reliance Securities has recommended a buy call on these three scrips

Reliance Securities recommends buy call on the following stocks:

SIEMENS

CMP: Rs 1,255| Recommendation: BUY| Target: Rs 1320-1350| Stop Loss: Rs 1,200

• Siemens rose to a six-month high, taking support of its medium-term moving average 50-day EMA.


• We believe the stock will continue its northward journey as golden cross-over of moving averages and stable RSI above 50-mark are signaling strength in the stock and it is in favor of probable up-move.


• In case of major decline, the stock will find strong support at around Rs 1,200, which currently coincides with its long-term moving average 200-day SMA.


• Thus, long position can be initiated here and on dips for the target of Rs 1320-1350 with a stop loss of Rs 1200.

Amara Raja Batteries

CMP: Rs 890| Recommendation: BUY| Target: Rs 940-955| Stop Loss: Rs 845

• Amara Raja Batteries was in tremendous selling pressure from last six months as the stock slipped from Rs 1,080 to Rs 821. In the last month, the stock reversed after forming Double Bottom Pattern around Rs 821 and later, it rose to one-and-half month closing high.


• Due to recent reversal in the stock, key technical indicators-RSI & MACD turned upward from their oversold levels. Currently, both the indicators are positively poised above their neutral line.


• As per the current daily setup, we believe that stock will gradually move upwards and in the near-term, it will recover some of prior damages.


• Thus, long position can be initiated here and on dips for the target of Rs940-955 with a stop loss of Rs 860.

IRB Infrastructure Developers

CMP: Rs 236| Recommendation: BUY| Target: Rs 255-265| Stop Loss: Rs 228

• IRB Infra witnessed sharp decline from Rs 249.40 in the mid-March, which dragged the stock to Rs230 in short span of time.


• Currently, the stock is consolidating around its medium-term moving average 50-day EMA and about to resume the uptrend.


• Positive cross-over in RSI on the daily chart is also coinciding with our view and in favour of probable break out.


• In case of any decline, its 50-day EMA will continue to work as key reversal point.


• Thus, long position can be initiated here and on dips for the target of Rs255-266 with a stop loss of Rs228.