Vaishali Parekh, Vice President for Technical Research at Prabhudas Lilladher has recommended three stocks that she thinks can deliver up to 10 per cent returns going ahead. They are Bajaj Finance, Kotak Mahindra Bank and BSE. This is what she said on the three picks:
The stock has made a decent correction from Rs 7,750 to Rs 6,387 levels and has made a trend reversal with Morning Star pattern on the daily chart, indicating an improvement in the bias. A further rise is likely on the counter. The stock has completed 50 per cent retracement level of the recent correction and a decisive move past Rs 6,700 ( 200-DMA ) would further strengthen the trend. The RSI indicator has confirmed the ‘buy’ signal with a trend reversal and we suggest traders to buy the stock for an upside target of Rs 7,300 keeping the stop loss at Rs 6,350.
The stock, after a short correction, has attained the trendline support zone of Rs 1,850 level to show signs of bottoming out. Parekh expects it to show a pullback, improve the bias and indicate a trend reversal. With a move past the significant 50EMA level of Rs 1,898, the trend would be further strengthened, she said, expecting it to hit targets of Rs 2,000-2,040 in the coming days. With the risk reward ratio favourable, parekh has recommended a ‘positional buy’ on the stock for an upside target of Rs 2,040 keeping a stop loss of Rs 1,800.
The stock has made a double bottom formation-like pattern on the daily chart. It has recovered substantially from thereon and is on a rise. Parekh anticipates further momentum in this stock. With the RSI indicator reversing, the trend is signaling a buy. Parekh is recommending a ‘Buy’ on this stock for an upside target of Rs 650, keeping stop loss at Rs 570.
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