Tuesday, 28 March 2017

Special Report: Super 5 Stocks for BTST

1.Just Dial Limited

The stock of Just Dial is looking weak in near term. Investors with a short-term perspective can consider selling the stock of Just Dial at current levels. Following an intermediate-term downtrend, the stock fell to an all-time low of 318 in late December 2016 and found support. Since then, it has been on a medium-term uptrend. However, after regaining 50 per cent of the Fibonacci retracement level of the prior downtrend, the stock encountered significant resistance in the 600-620 band in early March. Triggered by negative divergence in the daily relative strength index, the stock changed direction recently. This reversal was strengthened on in last week with the stock tumbling 5 per cent, breaching the support level at 580. The daily relative strength index has entered the neutral region from the bullish zone. The short-term outlook is bearish. It can extend the fall and reach the price targets of 550 and 530 in the ensuing trading sessions. Sell the stock with stop-loss at 600.

2.Vadilal Industries Limited

We recommended the stock of Vadilalind, which jumped almost 10 per cent accompanied by above-average volume in last two week. The stock taking support at the key base level of 660 in February, the stock has been on a medium-term uptrend. While trending up, the stock decisively breached its 200- and 50-DMAs and hovers well above them. The stock appears to have resumed its medium-term uptrend. There has been an increase in trading volume over the past three weeks. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI has also entered this zone from the neutral region. The short-term outlook is bullish. The stock can extend its uptrend and reach the price targets of 880 and 900 in the upcoming trading sessions. Investors with a short-term perspective can buy the stock with a stop-loss at 820.

3. LIC Housing Finance Limited

Investors with a short-term perspective can buy the stock of LIC Housing Finance at current levels. Following a sharp fall in November 2016, the stock found support in the range 470-475 and started to trend upwards. A long-term uptrend-line support around this region also cushioned the stock. Since then, the stock has been on a medium-term uptrend. However, the key resistance at 590 was limiting the stock until it breached this resistance by gaining 5 per cent in last week. The stock trades well above its 50- and 200-DMAs. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering this zone. The stock appears to have resumed its long-term uptrend. It can extend its current rally and reach the price target of 615 and 630 in the coming trading sessions.



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