Technical calls: Buy REC, DHFL and SBI, says Prabhudas Liladher

Here are three stock recommendations from Prabhudas Lilladher:

BUY Rural Electrification Corporation 

CMP: Rs 187.95    

TARGET: Rs 215   

STOP LOSS: Rs 180

The stock has made a decent correction from Rs 222, and has been consolidating at 186 level. With the RSI indicator at oversold zone, we anticipate a turnaround from hereon and with decent volume participation building up, we recommend a buy in this stock for an upside target of Rs 215 keeping a stop loss of Rs 180.

BUY  DHFL   

CMP: Rs 431.45    

TARGET: Rs  470  

STOP LOSS: Rs 415

The stock, after making a higher bottom formation in the daily chart, has picked up well and with the RSI on the rise and decent volume participation, we anticipate further move upwards to around Rs 470. The MACD indicator is also positive and on the rise. We recommend a buy in this stock keeping a stop loss of Rs 415 for an upside target of Rs 470.

BUY  SBI  

CMP: Rs 290.55     

TARGET: Rs 308   

STOP LOSS: Rs 280

The stock has been consolidating for a while hovering around the range of Rs 280-290, and has maintained a good support at around Rs 280. The stock has been in a trending upward move in the daily chart and while the RSI indicator has reversed its trend signaling a positive outlook, we recommend a buy in this stock for an upside target of Rs 308 keeping a stop loss of Rs 280.

The authour is Research Analyst - Technical Research at Prabhudas Lilladher

Disclaimer: The analyst may have positions in any or all the stocks mentioned above.