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You are here : IndiaNotes >> Research & Analysis >> Companies >> Bharat Electronics Ltd. >> Research

Weekly Equity Picks: Bharat Electronics, Idea Cellular

Way2wealth | 03 Jan, 2017  | Follow Author | Add to my Favourites 
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Bharat Electronics (Cash): Looking at the weekly chart, BEL has confirmed its breakout from its broad consolidation in the month of early December, 2016. This triggered acceleration in momentum and stock hit fresh all-time high of 1525. However, this bullish momentum immediately shifted which led to decent profit booking. The fall got arrested near 1330 which coincided with the daily 89-EMA and we saw smart recovery during last week. This led to a formation of Dragonfly candle on weekly chart precisely towards its breakout level. Also, the weekly RSI (14) has formed a Positive Reversal which is a bullish pattern. Considering the above technical set up, we term the recent correction as a normal pullback hence traders are advised to buy this stock at current level of 1375 with an upside target of 1508. Strict stop loss should be placed at 1325. Recommended Action: Buy.


Idea Cellular (Cash):
IDEA has been under pressure since last several months. In that pessimism, stock made a low of 65.80 (candle low of November 09, 2016). Subsequently, we witnessed decent pullback towards 80 however stock failed to hold its gain and corrected gradually erasing all its gains. Looking at the daily chart, we are seeing a three point Bullish Divergence and the third point of RSI (14) momentum indicator was tad below 40 marks. On weekly chart, another bullish harami candlestick pattern can be seen. Whereas, on a monthly chart, November month candle resembles Bullish Hammer and last month candle traded within the range of its previous month candle indicates indecisions. On a daily chart, stock has formed decent base formation in a range of 70 – 65. Combining above technical parameters, we recommend traders to accumulate this stock in a range of 74.50 to 72.50 with an upside target of 89. Strict stop loss should be placed at 65.50. Recommended Action: Buy.

 


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About Way2wealth

Way2Wealth today has established itself as one of India’s ‘Premier Investments Consultancy Firms’, known for making investing simpler, more understandable and profitable for the investors. They offer a wide range of products & services viz: Equity, Derivatives, Currency Futures, Commodities Trading, IPO's, Mutual Funds, Portfolio Management Services & Depository Services.

 

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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.




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