ESCORTS: BUY
Target: Rs 157
Stop Loss: Rs 145
The stock has been making higher top - higher bottom formation from last thirty eight trading sessions and is now taking support at its 200 DMA. It gave the highest daily close of last fifty eight trading sessions and is holding the gains above its 50 weekly moving average. It crossed and closed above its weekly hurdle of Rs 145 levels and gave the highest daily close of last 12 weeks. So we are recommending to buy the stock with stop loss of Rs 145 for the upside immediate target of Rs 157 levels.
LICHSGFIN: BUY
Target: Rs 488
Stop Loss: Rs 458
The stock has been making higher top-higher bottom formation with support shifting to higher levels. After a strong rally from Rs 388 to 495 levels in last five weeks it witnessed a pause in the momentum and declined towards Rs 460-455 zones. However, in the previous session it took support at its 200 DMA and again started its upside move which has bullish implication It has been continuously respecting its 50 DMA twenty six trading sessions. Thus recommending to buy the stock with the stop loss of Rs 458 for the upside target of Rs 488 levels.
M&M: BUY
Target: Rs 1270
Stop Loss: Rs 1180
It has formed an attractive price pattern with an open interest addition of around 2% in previous sessions. It has been consolidating in a broader range Rs 1280 to 1180 levels from last two series and the support is intact even after the volatility in the broader market. It has to hold above the support base to witness a momentum and buying interest towards Rs 1270 levels. Thus recommending buying the stock with the stop loss of Rs 1180 for the upside target of Rs 1270 levels.
IRB INFRA: SELL
Target: Rs 215
Stop Loss: Rs 228
The stock broke its support of Rs 225-223 zones and formed a negative price pattern. It has been making lower top –lower bottom formation from last five trading session and witnessing built up of short position with an open interest addition of around 20% in this entire series till date. It has been consolidating in a range from last two years but on immediate basis it failed to cross hurdle of Rs 240 zones and turning lower with selling pressure. Although major support of Rs 197-195 zones may remain intact but as per the recent database a profit booking decline cannot be ruled out at current level. Thus we are recommending selling the stock on bounce back move with the strict stop loss of Rs 228 for the upside target of Rs 215 levels.
Disclaimer : We are suggesting all these stocks to our clients but no personal holdings.
Chandan Taparia is a technical analyst with Anand Rathi
