STOCK STRAT­EGY

RCF ......................................... BUY .................................... CMP ₹60.55

Flash News Investment - - TECHNICALS -

BSE Code ...... 524230 Tar­get 1 .... ₹65 | Tar­get 2 .... ₹69 | Sto­ploss ... ₹57.50 (CLS)

✓ Cur­rent Ob­ser­va­tion: The stock, af­ter reg­is­ter­ing a high of Rs 64.90 as on Novem­ber 12, 2018, en­tered into cor­rec­tion mode and the cor­rec­tion halted near the lower end of the chan­nel. Af­ter the halt in cor­rec­tion, the stock has wit­nessed an up­move, which sug­gests there is de­mand for the stock near the lower end of the chan­nel. ✓ On the monthly time frame, the stock formed a lon­g­legged Doji-like can­dle­stick pat­tern as on month ended Oc­to­ber 2018. ✓ The stock is trad­ing above its cru­cial short term mov­ing av­er­age, i.e. 20-DSMA. ✓ The daily 14-pe­riod RSI has re­cently gen­er­ated a bullish crossover above its nine pe­riod av­er­age and is in a ris­ing mode, which sup­ports the pos­i­tive bias in the stock ✓ The stock has strong sup­port around the level of Rs 57.50 and the same can be main­tained as a stop loss level. On the up­side, the stock has the po­ten­tial to test the level of Rs 65, fol­lowed by Rs 69. ✓ Con­clu­sion: Con­sid­er­ing that the stock has taken sup­port at the lower end of the chan­nel and the RSI has re­cently gen­er­ated a bullish crossover, we would rec­om­mend buy­ing this stock for a short-medium term pe­riod with a stop loss of Rs 57.50 on a clos­ing ba­sis and with an up­side tar­get of Rs 65, fol­lowed by Rs 69.

RASHTRIYA CHEM­I­CALS & FER­TIL­IZ­ERS

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