Three stocks showing signs of uptrend in a weak market
Buy Hemisphere Properties India | Target: Rs 170 | Rs stop loss: Rs 148
The trading volume in the stock has increased gradually over the past few trading sessions. The stock recently witnessed a ‘sloping trend-line’ breakout, which confirms the implied strength. The 14 period RSI has seen a positive crossover and is trending north. Furthermore, the recent chart formation on the Bollinger Bands suggests a near term explosion in the channel, confirming the counter bullish trend.
Buy Prism Johnson | Target: Rs 152 | Stop Loss: Rs 127
Prism Johnson has been going strong for the past few sessions. However, it has been able to stay above the Bollinger Bands mean, indicating strength in the counter. On the daily time frame, the stock is trading well above all its major exponential moving averages, and even the leading indicator, the Parabolic SAR, is located below the stock price, confirming a bullish trend in the near future.
Buy Kei Industry | Target: Rs 750 | Stop Loss: Rs 684
The KEI is placed at the crucial support of the mean in the Bollinger Bands (20, 2) and the previous swing high that coincided with the 21 DEMA, suggesting that this is a strong support for the counter. Also, all the minor corrections in the secular uptrend in the stock has proved to be a good accumulation point for the bulls. This can be expected at a given point in time as a gradual increase in volume can be seen as the stock tests the mean.
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Disclaimer: Osho Krishna is a Senior Manager – Equity Research at Anand Rathi Shares & Stock Brokers. views expressed are personal