Vaishali Parekh of Prabhudas Lilladher has recommended three stocks namely Birlasoft, Piramal Enterprises and ABB. Birlasoft, which was consolidating for sometime, has signalled potential upside, she said adding that the risk-reward looks favourable for Piramal Enterprises.┬а In case of ABB, the technical expert recommended accumulating the stock for decent gains. Here’s what Parekh said on the three stocks:
Birlasoft | Positional Buy | Target Rs 330 | Stop loss Rs 288
The stock after the short correction has consolidated and taken support near the Rs 185-188 range, indicating improvement in the bias. The stock has moved past the significant 50-EMA level of Rs 298 and, with the RSI also flattening out near the oversold zone, there are signs of reversal, with immense upside potential visible. With the chart looking good, Parekh recommended a positional ‘buy’ on the counter with an upside target of Rs 330 and stop loss of Rs 288.
The stock, after forming the Triple Bottom formation pattern on the daily chart, has indicated a strong support zone near Rs 790-800. With a decent pullback, the bias has improved. The RSI is also showing a trend reversal from the oversold zone, giving a buy signal . With the risk reward ratio favourable and charts looking good, Parekh recommended a positional buy on the counter for an upside target of Rs 955, with stop loss being placed at Rs 800.
Also Read:┬аInox Green Energy stock rises 6% after Crisil revises credit rating
ABB | Buy | Target Rs 3,200 | Stop loss Rs 2,550
The stock has made a decent correction from Rs 3450 to Rs 2,650 level. It has also shown signs of taking support and consolidating near the 200-DMA level of Rs 2,670, which would be quite significant anticipating to give a pullback from here on. It has also completed the 61.8 per cent retracement level of the recent correction and has been moving sideways in a narrow range for quite some time.
