CCL Products, Titagarh Rail are top trading picks by Sharekhan for May 28

Titagarh Rail has been in a medium term uptrend. After a sharp run up the stock has been consolidating in a range and has formed a Triangle pattern on the hourly time frame chart.

CCL Products
 

CCL Products was in a downtrend and corrected ~20 per cent from the highs of Rs 690 to Rs 550. The correction was a five wave decline. On the weekly charts the stock formed a Hammer pattern after a sharp decline. 

The candlestick pattern suggests a trend reversal. The Daily Momentum indicator has triggered a positive crossover which is a Buy signal. 

The upmove has been accompanied with above average volume suggesting strong hands getting into the stock. We expect the stock to retrace and target levels of Rs 620 – 636. 

A stop loss of Rs 578 should be maintained for the long positions.

 

Titagarh Rail Systems

The stock has been in a medium term uptrend. After a sharp run up the stock has been consolidating in a range and has formed a Triangle pattern on the hourly time frame chart. A triangle pattern is a Trend continuation pattern and we expect it to breakout on the upside. 

The pattern target is placed at Rs 1,350 with potential to stretch towards Rs 1,425 as well. Stop loss should be maintained at Rs 1,190 for the long positions. 

The hourly momentum indicator is also suggesting that it could start a new cycle on the upside. Thus, the stock presents a favourable risk reward ratio at current levels

(Jatin Gedia is a technical research analyst at Sharekhan by BNP Paribas. Views expressed are his own)