The stock of KRBL is currently trading at ₹454.60. Its 52-week high/low stand at ₹477.60/ ₹218.25, which were made on July 20, 2017 and November 9, 2016. Currently, the stock is trading in consolidation after a straight upward rally that breached its all-time high levels. The consolidation is in the form of a prolonged 'pennant' pattern and just witnessed a pattern breakout followed by a pullback in the recent daily candle with rising volumes. The 14-period RSI is also quoting at the 68 level, which suggests some more momentum in the coming sessions. During consolidation, the stock retreated up to 38.2% retracement level, which is also the resistanceturned-support level and then bounced back. Recent weekly candle too saw a bounce from 23.6% retracement of the same rally. Thereby, we suggest a buy in the stock in the range of ₹467-470 for a target of ₹512, followed by ₹523 and a stop loss of ₹438.
The stock of NMDC is currently trading at
₹123.50. Its 52-week high and low stand at
₹152.50/ ₹98.75 made on March 2, 2017 and August 11, 2016. Considering the daily time frame, the stock has formed inverse 'head & shoulders' like pattern which has a breakout around ₹128-130 levels.
Accordingly, the stock attempted a breakout in the previous candle with huge volumes and witnessed a pullback in the recent candle. If this continues, the stock may correct up to ₹125.50-124.75 levels and then give a fresh buying. The 14-period RSI is quoting at 66, which suggests momentum.
On the weekly time frame, it is the fifth consecutive positive week for the stock, which is likely to continue if it breaks out of ₹126-128. We recommend a buy in the above range with a stop loss of ₹120.
(Closing price as of Aug 02, 2017)