Today's Pick

Ipca Laboratories (Rs 253.9): Buy

Updated on: Oct 31, 2011
image caption

We recommend a buy in the stock of Ipca Laboratories from a short-term perspective. It is seen from the charts of the stock that after encountering resistance in the zone between Rs 345 and Rs 350 in June and July, the stock started to decline. Retracing 38.2 per cent Fibonacci retracement level of its prior up move, the stock found support in the range Rs 230-235 price band in early October.

The stock, however, changed its direction triggered by positive divergence in the daily relative strength index and daily price rate of change indicator. On October 31, the stock jumped 5.7 per cent with above average volumes breaching its 21-day moving average. Daily RSI is inching higher in the neutral region towards the bullish zone and weekly RSI is recovering from the oversold territory. The daily moving average convergence divergence indicator has signalled a buy and is moving higher in line with the stock price.

Daily price ROC featuring in the positive territory implies buying interest. Taking a contrarian stance on the stock from a short-term perspective, we are bullish on the stock. We expect it to trend northwards and reach our price target of Rs 258 or Rs 270 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 246.

Published on March 12, 2018

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

COMMENTS
This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you