Buying IRCTC, Max Financial on dips may be a good idea; here's why

While the stock of max Financial Services has confirmed a major range breakout above 850-mark, the stock of IRCTC is in oversold zone, says Mehul Kothari of Anand Rathi

BUY Max Financial Services near 850 | Target: Rs 900 | Stop Loss: Rs 820

The stock has confirmed major range breakout above 850 mark and that has happened with decent volumes. In addition, the breakout resembles a bullish FLAG pattern on the weekly scale.  Thus, we advise traders to buy the stock only on a dip near 850-mark for an upside target Rs 900 in the coming sessions.

BUY IRCTC near 575 | Target: Rs 610 | Stop Loss: Rs 560

The stock is oversold, and we are witnessing a positive divergence on the daily RSI which indicates possibility of a bounceback. On the daily chart, we are witnessing a bullish hammer formation. Thus, we advise traders to buy the stock only on a dip near 575-mark for an upside target of Rs 610 in the coming sessions.

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Disclaimer: Mehul Kothari is AVP – Technical Research at Anand Rathi Shares & Stock Brokers. Views are personal.