Target - Rs 2,520
Stop Loss - Rs 2,380
Of late, we witnessed a decent price correction in the entire ‘IT’ space; but, now we can observe a cluster of support zone for some of its heavyweight constituents and ‘TCS’ is clearly one of them. Looking at the daily chart, it seems that the corrective phase is over as the stock prices are showing tremendous resilience around the daily ’89 EMA’, ‘200 SMA’ as well as the 61.8% Fibonacci retracement of the previous up move. Hence, we advise traders to buy this stock at current levels and on declines at Rs 2,420 for a target of Rs 2,520 over the next 6- 8 sessions. The stop loss should be fixed at Rs 2,380.
Union Bank OF India – BUY
Target – Rs 159
Stop Loss - Rs 147
This ‘PSU’ banking stock has been consolidating around its ‘200 day SMA’ since last couple of weeks. However, we are now observing some buying interest emerging around this strong support zone. This support zone coincides with the 61.8% retracement of the previous large up move. Although, prices are yet to show some positive traction, we anticipate a modest bounce back rally in the stock. Hence, we advise traders to buy this stock at current levels and on declines at Rs 150 for a target of Rs 159 over the next 6 - 8 sessions. The stop loss should be fixed at Rs 147.
M&M Financial Services – BUY
Target – Rs 385
Stop Loss – Rs 339
This stock had recently given a breakout from a falling trend line resistance and moved higher with good volumes. In last few trading sessions, the prices have retraced some of those gains and are currently trading near the 50% retracement support of the recent up move. The retracement support coincides with the previous resistance, which should now act as a support according to the role reversal technique of trend lines. Considering the above technical setup, there is higher probability of the stock resuming the uptrend in near term. Hence, we advise traders to buy this stock at current levels and on declines at Rs 350 for a target of Rs 385 over the next 6 – 8 sessions. The stop loss should be fixed at Rs 339.
: The analyst may have positions in any or all the stocks mentioned above.