Mo­men­tum Stock To Fo­cus On Right Now

Dalal Street Investment Journal - - COVER STORY -

TCS is cur­rently trad­ing at ₹2708.35. Its 52-week high/low stand at ₹2743.60/₹2054.70 made on Novem­ber 7, 2017 and Novem­ber 15, 2016, re­spec­tively, which shows that the stock has been trail­ing in a rec­tan­gu­lar pat­tern since Oc­to­ber 2014. Re­cently, the stock has at­tempted to move out of its com­fort zone with a mul­ti­ple point down­ward slop­ing trend­line break­out at ₹2675 level. Even the RSI on the weekly time frame is quot­ing at 68, which de­picts some more mo­men­tum go­ing for­ward.

On a daily ba­sis too, the re­cent ses­sions have seen ris­ing vol­umes and ROC too has bounced from the o lev­els and is quot­ing at 4.9 level at the break­out point. Within the range, the stock has been wit­ness­ing zig-zag pat­tern with sig­nif­i­cant higher bot­toms, i.e., sup­port at up­ward slop­ing trend­line.

With this, we feel TCS could be a good bet on mo­men­tum for a tar­get of ₹3050, fol­lowed by ₹3200 and with a stop loss of ₹2460. Asian Oil­field is cur­rently trad­ing at ₹205.30. Its 52-week high/ low stand at ₹249.60/₹60 made on March 27, 2017 and Novem­ber 9, 2016, re­spec­tively, which shows that the stock is trad­ing in an up­trend. Con­sid­er­ing the weekly time frame, the stock saw an im­pul­sive rally since Oc­to­ber 2016, and af­ter hit­ting its 52-week high, the stock wit­nessed a dou­ble top at ₹249 level and started cor­rec­tion from March 2017 which con­tin­ues till date.

The cor­rec­tion was up to 38.2% re­trace­ment of the prior up­ward rally and was seen con­sol­i­dat­ing at the same lev­els so far. Re­cently, con­sid­er­ing the daily time frame, the stock has given a mul­ti­ple point down­ward slop­ing trend­line break­out at ₹200 level with huge vol­umes. The 14-pe­riod RSI is quot­ing at 67 and the ROC and ROC av­er­age are quot­ing at 9.8 and 4, which show mo­men­tum ahead in the stock. Hence, traders can en­ter the stock at the cur­rent lev­els for a tar­get of ₹235, fol­lowed by ₹247 and stop loss of ₹185. (Clos­ing price as of Nov 8, 2017)

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