Dalal Street Investment Journal - - EQUITY TECHNICALS -

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)

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