Todays Pick

CESC (₹880.3): Buy

Akhil Nallamuthu BL Research Bureau | Updated on September 15, 2021

 

The stock of CESC Limited began the year on the front foot as it saw a sharp rally in the early weeks.

From about ₹615 the scrip hit a high of ₹731 in the third week of January, rallying nearly 19 per cent. However, it made a sudden U-turn and the price declined swiftly reaching ₹600 by the end of the same month.

Thereafter, the stock did not trend and was largely fluctuating within a price band i.e., within ₹590 and ₹640. Although in May, the bulls made a comeback and started to push the price upwards.

As a result, the stock established a rally and reached ₹871 in mid-July. What followed was a correction wherein the price dropped and touched the base of ₹730. Because this acted as a support, the scrip resumed its up-move and early on this week, it broke out of the prior high, opening the door for further rally.

Indicators like the RSI and the MACD are bullish too. So, one can buy with stop-loss at ₹850 for a target of ₹930.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on September 16, 2021

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