HDFC Securities has recommended the buy of a stock based on technical stock analysis. The stock has the potential to give a gain of 42% over the next 4 months.
The report of the stock recommendation can be downloaded here.
|Recommended Action||Buy between CMP & Rs.290|
|Targets||Rs. 350, 390, 430|
|Stop Loss||Rs. 270|
|Time Horizon||1 – 4 Months|
After falling from a high of 455, VRL Logistics found support around the 250 levels and made a double bottom around those levels in October 2018. The stock then rallied smartly from those support levels making higher tops and higher bottoms in the process.
Last week, the stock broke out of the 275-302 range on the back of above average volumes, which indicates that significant accumulation has happened in this counter.
Technical indicators are giving positive signals as the stock trades above the 13-day and 50-day SMA. Daily and Weekly momentum readings too are in rising mode and not in 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.
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