HDFC Securities has recommended a blue chip stock based on technical stock analysis. The blue chip stock has the potential to give a gain of 116%.
The report of the stock recommendation can be downloaded here.
|Recommended Action||Buy between CMP & Rs.66|
|Targets||Rs. 84 – 150|
|Stop Loss||Rs. 64|
|Time Horizon||6 – 12 Months|
• The stock is showing positive bias for the short term to medium term; the above “Monthly chart” of “Tata Power” is showing bullish evidences as per Japanese candle stick, western technicals and Elliot wave perspective.
• Price has validated the last week’s Engulfing Bull candle pattern (moved above candle’s high) which is confirmation of bullish reversal.
• Price has completed the Contracting Triangle pattern in larger degree. In addition the RSI oscillator is placed with strong positive divergence.
• Stock seems to have bottomed out at 59.80 which is end of “wave e of B” and price has reversed from the lows and provided a faster upward retracement on intraday charts.
• Wave wise “wave e of B” has ended at the low of 59.80 and from there the stock has begun a new rising leg – major “wave C” which could initially head towards 84 and then 150 levels (The levels are slightly below previous key swing highs and life time high).
• So traders can buy the stock between CMP to 66 with the stoploss of 64 on closing basis for the targets of 84 – 150.