Top 10 Stock Recommendations Based On Technical Analysis By Karvy

ValueMax

Monthly Investment Ideas

ValueMax helps clients to take a long stance on stocks from the S&PBSE-100 universe.

Comprising monthly technical investment ideas, ValueMax will have 10 stock recommendations, which will be issued at the beginning of every month.

The selection and recommendation criteria will be based on technical analysis.

BHARATFORG witnessed a strong up move from the lower levels of 600 to 680 within a short time frame of fifteen days. The stock is trading above the mean of the Bollinger band (20,2) and is rolling on the upper band of the same from past few sessions.

 The stock made a high of 799 in March 2018 and witnessed a round of profit booking which dragged the counter to the lower levels of 580-600 levels. Thereafter, the stock consolidated in the short trading range for few weeks and formed a good around the same. The volumes have been encouraging in the recent up move indicating strong hands have started accumulating the stock even at current levels.

 In the short term trade set up, the stock has given ‘’Inverted Head & Shoulder breakout’’ with good volumes and a gap up opening whose target is pegged around 745 to 750 levels with neckline placed at 655 levels on the lower side.

 On the daily charts, the stock is also having an unfilled gap below the 580 levels which has acted as a good support for the medium to long term perspective. At current juncture, the stock is looking bullish and is poised to surge higher towards 660 plus levels with 14 day RSI trading comfortably around 60-63 levels suggesting positivity in the counter.

 Among the indicators, The Parabolic-SAR is placed below the price on the daily chart, re-iterating our positive stance in the counter.

Our take: As per the above observations and the data facts, we expect the stock to trade in the bullish trajectory and also may outperform its peers in the next few weeks. We recommend to long in the stock around current levels for the targets of 745-760 levels and accumulate further around 640 with a stop loss placed below 615 levels.