Post Budget Technical Gems: Dewan Housing Corporation And ITC
Binu / 16 Mar 2012
Finally one of the eventful weeks comes to end with many of the investors sitting on cash to invest in stocks only after budget guidance. Dalal Street Investment Journal finds two hidden technical gems which can yield good gains in over a short-term period.
Dewan Housing Corporation
This scrip is currently trading at Rs 257. Its 52-week high/low stands at Rs 288/ Rs 244 made on April 20, 2011 and January 12, 2012 respectively. As per technical indications, the stock is uptrend for short-medium term. It has touched its two-week high on March 15, 2012. Further, the stock is trading above its 15-day EMA (247.80), 20-day EMA (247.20), 50-day EMA (236.89), 100-day EMA (*227.23) and 200-day EMA (225.33) and this indicates that it is in uptrend for short-medium term. The stock has a minor resistance at around levels of 260. As per the relative strength index (RSI), the stock was in an over-sold zone but recent moves indicate a trend reversal. One can enter with a short-term perspective for a possible upward movement of Rs 270-288 with strict ‘stop loss’ of Rs 242 on a closing basis.
| Budget Day Closing Price: | 257 |
|---|---|
| Target: | 270-288 |
| Stop Loss: | 242 |
ITC
This scrip is currently trading at Rs 216. Its 52-week high/low stands at Rs 225 Rs 165.60 made on March 16, 2012 and March 18, 2011 respectively. As per the technical indications, the stock is uptrend for a short-medium term. It has touched its 52-week high as on March 16, 2012. The stock is trading above its 15-day EMA (208.36), 20-day EMA (207.89), 50-day EMA (205.98), 100-day EMA (*204.01) and 200-day EMA (199.26) and this indicates that the stock is in uptrend for a short-medium term. According to the MACD analysis, there is a centre-line bullish crossover and it’s a positive signal for the stock. As per the relative strength index (RSI), the stock was in an over-sold zone but recent moves indicate a trend reversal. The stock has broken resistance defined by the Bollinger band along with good volumes as on March 16, 2012. One can enter for short term for a possible upward movement of Rs 230-250 with strict ‘stop loss’ of Rs 190 on a closing basis.
| Budget Day Closing Price: | 216 |
|---|---|
| Target: | 230-250 |
| Stop Loss: 190 | 190 |
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