Vaishali Parekh, Vice President for Technical Research at Prabhudas Lilladher has recommended three stocks namely Infosys, Bank of Baroda and HUDCO to traders. While Infosys and HUDCO are positional calls, Bank of Baroda is a short term call. Parekh believes the three stocks look strong on technical charts after a recent short-term correction. This is what she said on the three stocks:
Infosys | Target Rs 1,660 Stop loss: Rs 1,440 | Positional call
Infosys has consolidated and taken support near the Rs 1,500 level after a short correction. This is almost the 50 per cent retracement of the recent rally, indicating some improvement in the bias. With the RSI also flattening out near the oversold, there are signs of reversal, with upside visible. A decisive move past the significant 50EMA and 200DMA levels of Rs 1,550 would further strengthen the trend. Parekh has recommend a positional ‘Buy’ on the counter for an upside target of Rs 1,660, placing a stop loss at Rs 1,440.
Bank of Baroda: Target Rs 200 | Stop Loss: Rs 172 | Short term
Bank of Baroda is in a strong upward trend after the short correction and has recently taken a support near the significant 50EMA level of Rs 165. It indicated a trend reversal, with a decent pullback that has improved the overall bias on the daily chart. The RSI has also shown a trend reversal. One can buy this stock for an upside target of Rs 200, keeping the stop loss placed at Rs 172.
HUDCO | Target | Rs 63 Stop loss: Rs 46 | Positional call
After forming a double top formation, the HUDCO stock has slipped with a short correction and has taken support near Rs 45 zone, indicating a pullback. The bias has improved with sustained upward move. The RSI is also showing a trend reversal and has immense upside potential visible. With the risk reward ratio favourable and chart looking good, Parekh has recommended a positional buy for an upside target of Rs 63, keeping a stop loss at Rs 45.
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