Wipro (BUY, above Rs445, Target Rs470):
The stock has done pretty much nothing in 2010,
besides moving in a trading band between
Rs445-370. On Thursday, after a long time, the
stock made an attempt to cross above the upper
end of the trading range. A move above Rs445
would lead to a breakout from the rangebound
trading pattern. Our view is further validated
after the stock gave a close above the cluster of
moving averages. If the stock holds up above the
levels of Rs455 today, it can post huge upside in
the coming trading sessions. We recommend
high risk traders to buy the stock above
Rs445 for target of Rs470. Maintain a strict
stop loss of Rs435.
Crompton Greaves (BUY, above Rs318,
Target Rs338): On the daily chart, the stock
has been moving in a bullish Price channel since
July 2010. It is a continuation pattern that slopes
up and is bound by an upper and lower trend
line. The upper trend line marks resistance and
the lower trend line resembles support. The
upper resistance line is drawn from last week of
July 2010. While the support line coincides with
the support of its 20-DMA. Yesterday, the stock
surged by ~3% accompanied with impressive
volumes. We recommend traders to buy the
stock above Rs318 with stop loss of Rs310
for target of Rs338.
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