Long Term Technical Stock Pick: Buy Tata Power For 116% Gain

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.

Trading Ideas
Stock Tata Power
CMP Rs 72
Recommended Action Buy between CMP & Rs.66
Targets Rs. 84 – 150
Stop Loss Rs. 64
Time Horizon 6 – 12 Months
Potential Upside 116%

Stock trading idea recommendation




Observation:

• 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.

Buy Tata Power
(Click for larger image)

Click here to download the Research report on Tata Power




Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Comment (1)

  1. Anilkumar Karimbanakkal

    Thanks for your recommendation..! How do you feel Tata Motors, Aditya Birla Capital, Capacite Infra, RCF and CDSL current pricing.. Do you expecting more down side or is it right time to accumulate?

    Reply

Leave a Comment

Your email address will not be published. Required fields are marked *