Investors with a short-term trading perspective can buy Fedders Lloyd Corporation at current level. Short-term trend in the stock is bullish. It has been moving up vertically without any correction since October 6. Momentum indicators in the daily chart have moved in to the overbought region but there is no sign of weakness yet. The stock closed above the immediate resistance at Rs 69 on Monday implying that the vertical climb can extend. Investors can buy the stock with a stop at Rs 68. The uptrend is expected to take the stock to the target of Rs 82 in the short-term.
We recommend a sell in the stock of Tata Power Company from a short-term perspective. It is evident from the charts of the stock that its intermediate-term uptrend that commenced in March low of Rs 602 was arrested at Rs 1,487 in late October. The stock has a significant long-term resistance in the band between Rs 1,450 and Rs 1,500 level. Triggered by the negative divergence in the weekly relative strength index and moving average convergence and divergence indicator the stock reversed its direction. Since late October, it has been on a short-term downtrend. On October 30, the counter tumbled 4 per cent penetrating its intermediate-term up trendline. Moreover, it declined 4 per cent with good volume on November 6, reinforcing the downtrend. The stock is trading well below its 21- and 50-day moving averages. The daily momentum indicator has entered the bearish zone. Our short-term outlook on the stock is bearish. We anticipate its decline to continue until it hits our price target of Rs 1,145. Traders with a short-term perception can sell the stock while maintaining stop-loss at Rs 1335.
Recommendation: Buy
Last Close: Rs 243
Last Close: Rs 270/80
Stop Loss: Rs 218
GE Shipping has a very good support around Rs 220-25 levels; these levels would act as support if the stock corrects from current levels. Keep stop loss below Rs 218 for a possible target of Rs 270/80.
Recommendation: Buy
Last Close: Rs 47.70
Last Close: Rs 52
Stop Loss: Rs 45
Truck major Ashok Leyland is in uptrend in the short-term period; the stock is moving up with good volume and has very good support around Rs 45. Keep stop loss below Rs 45 for a possible target of Rs 52/53.
Recommendation: Sell
Last Close: Rs 288
Last Close: Rs 260
Stop Loss: Rs 300
HCL Tech has hit high of Rs 352 and then started moving down after making lower top of Rs 335. Currently trading below Rs 297, it can lead to further downside up to Rs 260. Keep stop loss above Rs 300 for a possible target of Rs 260.
Recommendation: Buy
Last Close: Rs 544
Last Close: Rs 605
Stop Loss: Rs 518
Divi’s Labs has very good support at Rs 518-30; these levels would act as support if the stock corrects from current levels. Keep stop loss below Rs 518. It has a resistance at Rs 570 at which upgrade trailing stop loss to Rs 540.
Recommendation: Buy
Last Close: Rs 700
Last Close: Rs 740
Stop Loss: Rs 680
FMCG major Colgate-Palmolive is in uptrend for short term and is moving up with good volume. The stock has a very good support around Rs 680. Keep stop loss below Rs 680 for a possible target of Rs 740.
Investors with medium-term perspective can considering buying the stock of Elecon Engineering Company. Since March low of Rs 24, the stock has been on an intermediate-term uptrend. Moreover, it has been on a medium-term uptrend too since July low of Rs 60. After taking support at Rs 90, the stock resumed its uptrend with a weekly gain of almost 13 per cent. It is trading way above the 21-day and 50-day moving averages.
There is an increase in weekly volumes over the past three weeks. Bullish signs are noticed in both the daily and weekly momentum indicators. We believe that the counter has the potential move up to Rs 133 in the medium-term. Investors can buy while maintaining Rs 85 as the stop-loss. Short-term traders can buy with a target of Rs 112 and Rs 96 as stop.
Investors with medium-term perspective can consider buying Asahi India Glass. Its long-term downtrend that began at the January 2008 high of Rs 137 halted in the range between Rs 33 and Rs 35 this March.
Since then, the counter has been on an intermediate-term uptrend. Trend reversal was triggered by the positive divergence in the weekly moving average convergence and divergence indicator and monthly relative strength index reaching the oversold levels.
The stock made a weekly gain of 20 per cent breaking through a significant resistance at Rs 60 and is currently trading above its 21- and 50-day moving averages.
The momentum indicators are showing signs of optimism. We believe that the stock has potential to rally to Rs 90 in the medium-term. Investors can buy while maintaining Rs 51 as stop-loss. Short-term traders can buy with a target of Rs 71 and Rs 61 as stop.
