EVEREST KANTO CYLINDER .................. BUY ..................... CMP ₹49.55
BSE Code ...... 532684
Target 1 .... ₹57 |
Target 2 .... ₹64 |
Stoploss ... ₹42(CLS)
✓ Current Observation: The stock, after registering high of Rs 49.25 in the month of July 2017, entered into a correction phase and the correction halted at the level of Rs 32.20, and thereafter, a pullback rally was seen which paused at Rs 42.30, and again the stock went into a correction, which got arrested at the level of Rs 32.65. This resulted into formation of a double bottom pattern.
✓ At present, the stock has witnessed breakout as defined by the horizontal trendline placed at the levels of Rs 49.25-49.50.
✓ Among the oscillators, the weekly 14-period RSI has entered into bullish zone and is on a rising trajectory after marking a low reading of 51.
✓ The level of Rs 42 is likely to act as a strong support and this could be maintained as a stop loss for long positions. On the upside, the stock is likely to touch levels of Rs 57-64.
✓ Conclusion : Considering the breakout of horizontal trendline and the stock trading above its 21-day EMA, we recommend buying this stock for target price of Rs 57-64, with stop loss at Rs 42 level.