Positional Technical Pick: Buy NBCC For 40% Upside

nbcc

HDFC Securities has recommended a high-quality stock based on technical stock analysis. The stock has the potential to give a gain of 40%.

The report of the stock recommendation can be downloaded here.

Trading Ideas
Stock NBCC
CMP Rs 60.50
Recommended Action Buy between 54 & 60.5
Targets Rs. 71, 82, 92
Stop Loss Rs. 50
Time Horizon 1 – 4 Months
Potential Upside 40%

NBCC Technical Stock Pick



Observations:

NBCC has shown a lot of relative strength of late. Zooming into the daily charts, we notice that the stock has rallied from major supports of 49-50. These levels have acted as strong supports in the year 2016 (See the red horizontal line in the chart above). The stock has also in the process broken out of the 50.8-59.3 trading range last week on the back of above average volumes. This indicates that significant accumulation has happened in this counter.

Technical indicators are giving positive signals as the stock trades above the 13-day SMA and is now on the verge of moving above the 50-day SMA. Daily and Weekly momentum readings too are in rising mode and not in extremely overbought territory.

We believe the stock is ready to continue the next leg of its underlying uptrend and has the potential to move higher in the coming months as it attempts to test its previous intermediate highs. We therefore recommend a Buy at CMP and adding more on any dips. Our entry levels, along with stop loss and targets have been mentioned above.

NBCC-Chart

Please note:

This report has been prepared based on Technical and/or Derivative Analysis both of which use unique tools to recommend buys/sells as well as to estimate targets. The targets arrived at using these methods of analysis may therefore differ from the targets arrived at by using fundamental analysis on the same company whether by HDFC Securities Ltd. or otherwise.

Click here to download the Research report on NBCC




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