BHEL (BUY, above Rs255, Target Rs265):
BHEL on the daily chart has negated ‘Hanging Man’
pattern on candlestick after prices managed to
post a positive closing despite lower opening on
Wednesday. A move past Rs255 would ensure that
rally has good potential to test levels of Rs269
which turns out to be long term resistance. The
RSI despite entering into overbought position no
showing signs of faltering out and momentum
could extend higher in coming days. We
recommend buying BHEL above Rs255 with
stoploss of Rs250 for Target of Rs265.
(Duration 7 days).
Ranbaxy (BUY, above Rs536, Target Rs552):
Ranbaxy has been consolidating near the support
zone of Rs525 after it peaked out at Rs568 in
early September 2012. Currently stock price has
been hovering near the support of 50 DMA from
which sharp rally is expected in the near term.
Recent volumes is also on the higher side with
daily candlestick taking shape of ‘Bullish Harami’
formation. A move past Tuesday’s high has decent
potential to trigger sharp rally in the counter. We
recommend buying Ranbaxy above Rs536
with stop loss of Rs528 for Target of Rs552.
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