Thermax, SBI Card look set to bounce back after correction: Mehul Kothari

For many weeks, the stock of SBI Card has been under corrective mode and has come down from the peak of 1,160 towards the 900 mark.

BUY THERMAX | TARGET: Rs 1,850 | STOP LOSS: Rs 1,640

Recently, the stock confirmed a breakout from the pattern which resembles a bullish Pennant. Later, it went till 1,943 and corrected back towards 1,700-mark. The theoretical target for the pattern is around 2,050 and the pattern is still intact. Hence, traders are advised to buy the stock near 1,725 with a stop loss of 1,640 for the upside potential target of 1,850 in 1 – 2 weeks.

BUY SBICARD | TARGET: Rs 950 | STOP LOSS: Rs 890

For many weeks, the stock has been under corrective mode and has come down from the peak of 1,160 towards the 900 mark. It has entered oversold zone on the smaller time frame and, in addition, has multiple bottoms near 880 mark. The stock seems to be preparing for some bounce from here on. Thus, traders are advised to buy the stock near 910 with a stop loss of 890 for the upside potential target of 950 in 1 – 2 weeks.

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Disclaimer: Mehul Kothari is AVP – Technical Research at Anand Rathi Shares & Stock Brokers. He may or may not have positions in the above mentioned stocks. Views are personal.