The stock BATAINDIA has corrected from the top of over 1600 to the recent bottom below 1300-mark. This has brought the stock under oversold zone in smaller time frame. At this juncture, the stock is trading near the potential reversal zone of a couple of harmonic patterns called CYPHER and a SHARK. For a medium-term trader, this could be a perfect price to go long with a time frame of 1 – 2 months. Thus; traders are advised to buy the stock in the range of 1290 - 1270 with a stop loss of 1200 for the upside potential target of 1420 in 3 – 5 weeks.
Since the past couple of weeks, the PHARMA index has been doing phenomenally well. Of this, the stock DRREDDY has been a bit underperformer but now has gained the limelight due to the production of Russian SPUTNIK V vaccine. The price pattern is very strong on the technical parameters and the stock could outperform once there is more clarification on the developments of vaccine. Traders are advised to buy the stock in the range of 4990 - 4940 with a stop loss of 4800 for the upside potential target of 5350 in 3 – 5 weeks.
Disclaimer: Mehul Kothari is AVP – Technical Research at Anand Rathi Shares & Stock Brokers. Views are personal.
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