Vikas Jain, Senior Research Analyst, Reliance Securities recommends the following stocks:
CMP: 847| RECO: BUY| TARGET: 945| STOP LOSS: 825
The stock rose to 52-week high forming higher top higher bottom pattern on the daily chart. Couple of days back, it had witnessed a sharp decline from the recent peak but later managed to hold further decline with a narrow range consolidation.
Reversal in RSI from its oversold zone is signaling that the stock is on a verge of a turnaround.
As per the current daily set-up, we believe that the stock will soon resume its uptrend and record new 52-week high.
In case of any negative surprise, monthly average and recent base formation level will act as key support for the stock.
Long position can be initiated here and on dips for a target of Rs945 with a stop loss of Rs825.
CMP: 494| RECO: BUY| TARGET: 535-565| STOP LOSS: 479
The stock has witnessed sharp decline from its life-time-high of Rs564.60 on back of result disappointment, where the long-term moving average 100-day SMA saved it from falling further and supported a healthy reversal.
Due to recent price reversal from sub-480 mark, RSI reversed from its bull market support zone (i.e. 40-33) and Stochastic has also given positive cross-over.
We believe that, the stock will recover prior damages and climb higher levels, where it could face initial resistance at Rs535 (recent negative gap) and then at Rs565 (life-time-high).
In case of any negative surprise, recent swing low will work as key reversal point for the stock.
Long position can be initiated here and on dips for a target of Rs535-565 with a stop loss of Rs479.
CMP: 676| RECO: BUY| TARGET: 780| STOP LOSS: 610
The stock rose to five and half month high after recovering from its 52-week low of Rs531 and settled above its long-term moving average 200-day SMA, which is a positive signal.
Bullish divergence of key technical indicators-RSI and MACD w.r.t. prior fall in price is signaling that the stock is out of previous negative momentum.
As per the current daily set-up, we believe that stock will continue moving higher, where it will face major hurdle around its 52-week high.
On the lower side, the stock will find strong support around its medium-term moving average 100-day SMA.
Long position can be initiated here and on dips for a target of Rs780 with a stop loss of Rs610.
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