Recommendations

Hi guys,
Finally there is some good pattern developing in Hindustan Oil Exploration. After running almost without correction to 380 the stock entered an intermediate period of correction. The stock took a support at 247 levels which was 50% retracement level. The stock has broken out of the downward trendline. Volumes have improved. Now the stock is heading towards 380 again. Target -380. Stoploss - 275.

Another Ascending triangle formation has been completed in Suven Lifescience. Buy with a target of 40 and stoploss of 28. CMP-32.

 

 

Pick - Simbahaoli Sugar

Hi Guys,
First of all a word of caution. The market is looking toppish. Do not go on buying overdrive. The Nifty is looking like forming a rounded top. But it does not mean selling out since it has not broken down below 50 day EMA significanlty and the trendline is yet to be tested which is around 4820. But be cautious.

The pick is Simbhaoli Sugar. Forming a very nice pattern. Looking like a probable triangle breakout. Buy with a stoploss at 68. Target would be in range of 90-95.

Chennai Petro

Chennai Petro is looking very good for both medium term and long term. On the weekly charts, the stock has come out of a long term downtrend with huge volumes. The indicators are also good. The moving average has had a crossover and the MACD is giving positive divergence. On the daily charts, the stock has formed a rounded bottom and now gave a breakout over 210.


So for short term buy at CMP with SL- 190. First target is 250. The sequential target is 325-330 levels for long term.

Cairn India

 Indutry – Oil & gas

The stock started its uptrend from 150/- after forming double bottom in Mid February. Journey was halted in June beginning at 270 when the stock gave a 50% pullback of the advance to 210.

The low of 210 was formed in July. Thereafter the stock has spent 1 month in the band between 230 & 250. From 250 levels it hasbroken out of trianglw with good volumes. The oscillators have also shown a positive divergence.

 Stock warrants a buy with a stop at 235. Targer of 320 looks easily possible.

CMP – 260.

Risk- 25

Reward- 60.

Ratio – 25/60 = 42%