Osho Krishan sees upside potential in Mrs Bectors, Burger King; here's why

BUY MRS BECTORS FOOD SPECIALITIES | TARGET: Rs 475 | STOP LOSS: Rs 400

Bector Food has seen a secular rally from its 52-weeks low of Rs 328 odd zones and since then there has been no major correction in the counter. The stock is currently hovering near its long-term exponential moving average (200 DEMA) that even collides with the 38.20% of the Fibonacci retracement, suggesting huge upside room for the counter. In the recent past, the formation of rounding bottom with a gradual increase in the trading volumes is sign of a rally. On technical parameters, 14 period RSI has been trading in the comfort zone, pointing northwards, accompanied by leading indicator Parabolic SAR that is placed well below the stock price, affirming the bullish stance in the counter. Hence, from a risk-reward point of view, one could accumulate the stock from a short to medium-term perspective.

BUY BURGER KING INDIA | TARGET: Rs 180 | STOP LOSS: Rs 155

After 8 per cent correction over the last few sessions, Burger King has plunged near to its previous swing high that even collides with its 21 DEMA. The stock has been trading in a cycle of higher highs and higher lows for the past couple of weeks and any kind of correction has been utilised by buyers to accumulate the stock. On the daily time frame, the stock is hovering well above all its major exponential moving averages, suggesting inherent strength. The mean of the Bollinger band (20, 2) is expected to provide a cushion to the fall, and looking at the historical data some resurgence could be expected from here on. Even the leading indicator, Parabolic SAR is situated below the stock price, affirming the inherent strength in the counter.

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Disclaimer: Osho Krishan is senior manager – equity research at Anand Rathi Shares & Stock Brokers. Views expressed are personal.