 "Federal Bank net profit up 18%")
Federal Bank
Federal bank has been in a medium-term uptrend. The recent pullback towards the zone of Rs 154 – 156 was brought into and the stock has been witnessing buying interest from that crucial support zone.
The pullback appears to be over and we expect the stock to begin a fresh leg of upmove which is likely to push the stock towards fresh all time High of Rs 170 and potential towards Rs 185 levels. The stock offers a favourable risk reward ratio and hence can be entered at current level with a stop loss placed at Rs 156.
BHEL
The stock in the recent correction has corrected towards the 20-day moving average (Rs 273) and witnessed buying interest. It has also retested the previous breakout level of Rs 275 in the process.
The stock is likely to start a fresh leg of upmove which can take the stock to Rs 318 and potentially towards Rs 335. One can enter the stock at current levels as the recent correction has made the stock attractive from risk reward perspective.
(Jatin Gedia is a technical research analyst at Sharekhan by BNP Paribas. Views expressed are his own.)
