Diwali Picks 2012 - IDBI Capital

M&M - On the weekly charts, M&M has witnessed a Flag Pattern Breakout near its life time high. The breakout took place after two years of long consolidation and now the stock is poised for a decent rally for alteast the equi-distance height of the consolidation. On the oscillator's front; RSI & MACD are placed with positive signals on the weekly charts. Therefore, traders can accumulate the stock at cmp and on dips to 865 for a target of 1200 with a strict stop loss placed below 815. Investment horizon would be one year.

NHPC - On the weekly charts, NHPC has witnessed a Falling Wedge Breakout which was accompanied with rising volumes. Structurally, the stock has registered a Double Bottom at 17.15.Overall, the stock is bottoming at the current levels and the set up indicates the signs of a trend reversal. On the oscillator's front; RSI & MACD are placed with positive signals on the weekly charts. Therefore, traders can accumulate the stock at cmp and on dips to 19.50 for a target of 30 with a strict stop loss placed below 17. Investment horizon would be one year.

DB Realty - On the weekly charts, DB REALITY has witnessed an 18 month consolidation breakout which was supported with strong volumes. Structurally, the stock has bottomed out and the set up is poised to launch an upside rally for the long term. On the oscillator's front; RSI & MACD are placed with positive signals on the weekly charts. Therefore, traders can accumulate the stock at cmp and on dips to 90 for a target of 207 with a strict stop loss placed below 83. Investment horizon would be one year.

Ashok Leyland - On the weekly charts, ASHOK LEYLAND has formed Higher Top Higher Bottom after taking support multiple times at 20. The construction of charts indicated that the stock is well positioned for an upside rally in the long run. On the oscillator's front; RSI & MACD are placed with positive signals on the weekly charts. Therefore, traders can accumulate the stock at cmp and on dips to 22 for a target of 34.50 with a strict stop loss placed below 18.70. Investment horizon would be one year.

UFLEX - On the weekly charts, UFLEX has witnessed a 24 months severe downtrend from its all time high of 322. Currently, the downtrend has got exhausted near the multiple support of 90.Technically, the stock is highly oversold and now it is well positioned for a trend reversal till 23.60% of the retracement of the downtrend. On the oscillator's front; MACD is placed with positive signal on the weekly charts. Therefore, traders can accumulate the stock at cmp and on dips to 85 for a target of 150 with a strict stop loss placed below 75. Investment horizon would be one year.

CIPLA - On the weekly charts, CIPLA has witnessed a Flag Pattern Breakout and the stock is trading near its life time high. The breakout took place after almost three years of long consolidation and now the stock is poised for a decent rally for alteast the Equi-distance height of the consolidation. On the oscillator's front; RSI & MACD are placed with positive signals on the weekly charts. Therefore, traders can accumulate the stock on dips to 375 for a target of 450 then 500 with a strict stop loss placed below 330. Investment horizon would be one year.

Source : Equity Bulls

Keywords