Career Point, MT Educare: Here's how to trade education related stocks

Education-related stocks are either trading sideways or waiting for an upward breakout, with major supports being held firmly, technical charts suggest

In a bid to increase core focus on education, the Chinese government over the weekend issued a new regulation that bars China's tutoring companies from being profit oriented. They will no longer be able to raise capital in the stock market or invest in other education providers. They will also be banned from offering tutoring services during the weekends and school breaks. 

This move disturbed the current sentiment market sentiment, with education stocks plunging in the wake of a sweeping overhaul that threatens to upend the $100 billion sector and jeopardize billions of dollars in foreign investment. READ HERE

Amid this backdrop, can listed Indian plays in this space offer good returns to global investors?

Here's what tech charts are signalling:

Career Point Limited (CAREERP)

Likely target: Rs 175 and Rs 185

Upside potential: 6% and 12%

This is the second time the stock is attempting to cross the 200-day moving average (DMA) in recent times. On an earlier occasion, it failed due to lack of follow-up buying. Now, with a positive crossover of 50-DMA with 100-DMA, the momentum seems to favour the bulls. An aggressive move above the earlier resistance of Rs 165 levels may help the stock breakout towards Rs 175 and Rs 185 levels. The support stays intact at 200-DMA level of Rs 151, shows chart. CLICK HERE FOR THE CHART

CL Educate Limited (CLEDUCATE)

Likely target: Rs 160

Upside potential: 11%

The stock has recently conquered the 200-weekly moving average (WMA), suggesting positive sentiment from a medium-term perspective.  Although, the Relative Strength Index (RSI) is trading in the overbought condition, the price action is not letting selling pressure dampen the upward direction. The stock has the potential to head towards Rs 160 levels, as per the weekly formations. The support, meanwhile, comes at Rs 130 -135 levels. CLICK HERE FOR THE CHART

Global Education Ltd (GLOBAL)

Likely target: Rs 56 and Rs 58

Upside potential: 7% and 11%

The counter is currently hovering around 200-DMA, placed at Rs 48.10 levels. But a breakout above Rs 52-mark can result in an upside towards Rs 56 and Rs 58 levels. The positive sentiment is built upon the “Golden Cross” of 50-DMA with 200-DMA. Meanwhile, the downside support is capped above the closing basis support of 200-DMA. The overall trend remains bullish above the said support level, as per the charts. CLICK HERE FOR THE CHART

MT Educare Limited (MTEDUCARE)

Likely target: Rs 11 and Rs 15

Upside potential: 14% and 50%

The counter is currently holding around the 200-DMA, placed at Rs 8.90 levels while the support stays at Rs 8.35 levels, its 100-DMA. In order to move upwards, the stock must decisively conquer 50-DMA, placed at Rs 9.60 levels. Upon crossing this resistance, the stock may see an upside towards Rs 11, the breakout level of “Golden Cross”, following it may cross Rs 15 mark in the medium term, as per the daily chart. CLICK HERE FOR THE CHART

Zee Learn Limited (ZEELEARN)

Likely target: Rs 18

Upside potential: 12%%

As long as the counter defends the support of 50-DMA, placed at Rs 15 levels, on a closing basis, the positive sentiment may see a rally towards the immediate resistance level of Rs 18. The Moving Average Convergence Divergence (MACD) has dipped below the zero line and is making efforts to cross and rise again. If that happens, the direction could see a firm support from volume structure. CLICK HERE FOR THE CHART