Jatin Gedia of Sharekhan recommends buying these two stocks today | News on
GAIL has broken out of a resistance zone of Rs 233 – Rs 235. The breakout has been accompanied with above average volume.
Jatin Gedia Mumbai
Shriram Finance
Shriram Finance was trading in a downward sloping channel. It has found buying interest at the support zone Rs 2,700 – Rs 2,680 where parameters in the form of the 40 day exponential moving average and the daily lower Bollinger band was placed.
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It has broken out of that channel on the upside indicating trend reversal. The daily momentum indicator has reached the equilibrium line suggesting that consolidation has matured and can start a new cycle. We expect the stock to reach levels of Rs 2,990 – Rs 3,059 from a short-term perspective. One should keep a stop loss of Rs 2,800 for the long positions
GAIL India
GAIL has broken out of a resistance zone of Rs 233 – Rs 235. The breakout has been accompanied with above average volume. Daily Bollinger bands are expanding indicating that the upmove is likely to continue.
Daily momentum indicator has a positive crossover which is a buy signal. Thus, we expect the positive momentum to continue. On the upside, we expect levels of Rs 247 – Rs 252 from a short-term perspective. Stop loss of Rs 232 should be maintained for the long positions.
(Jatin Gedia is a technical research analyst at Sharekhan by BNP Paribas. Views expressed are his own)
This article was originally published by a www.business-standard.com
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