BUY COAL INDIA | TARGET: Rs 158 | STOP LOSS : Rs 140
Coal India has corrected over 10 per cent in the last trading week and is trading close to the previous consolidation zone. On the daily time frame, the stock is hovering near its long-term exponential moving average, which even coincides with the lower band of the Bollinger (20, 2), indicating strong support at lower levels. From a risk-reward point of view, the stock is inevitably a BUY and any closure above the breakout zone is expected to trigger momentum in the counter.
BUY FEDERAL BANK | TARGET: Rs 94 | STOP LOSS: Rs 79
The stock has taken support from the 50 per cent of the Fibonacci retracement of the recent fall and has bounced from the same, forming a strong bullish candle in the last trading session. The bounce was backed by the technical oscillator, wherein the 14 period RSI reversed its trend to witness a positive crossover followed by stochastic RSI, which signalled a strong bullish reversal for the counter. Even the stock is placed well above the supporting trend-line suggesting the primary momentum will continue.
BUY NTPC | TARGET: Rs 132 | STOP LOSS: Rs 108
NTPC has been trading in a secular uptrend and is placed well above all its major exponential moving averages on the daily time frame. The stock has resurged from the mean of the Bollinger band to form a Bullish engulfing pattern in the last trading session, suggesting continuation in its primary up-trend. The stock has been trading in a rising channel and is in the cycle of higher highs higher lows affirming the bullish stance in the counter.
Osho Krishan is Senior Manager – Equity Research at Anand Rathi Shares & Stock Brokers. View expressed are personal.