Two Buy and One Interesting Stock to Watch

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PIIND_medium term


The exit poll numbers have arrived and suggest that the existing government is expected to stay in power by winning the lower house of parliament with a majority. If that happens, that would be great news for the markets and the overall economy. The reason that it is good for markets is that it shows stability in an economy, that its people trust the government and have confidence in their economic policies that would lead the country on the path of higher development.

So if we expect the stock market to rise, then the best idea would be to stay invested in your existing holdings. Although if one wants to play in the market then one must go with the flow, that means to invest in stocks that are already in the rising trend, because then you will slip the risk of sailing against the tide. After all, the trend is your best friend. Keeping the above points in mind, we have two stocks for you that may turn out to be good investments. One more stock can be interesting to watch/invest as it has taken support on multiple occasions around same price area.

PI Industries Ltd (NS:), Close: 1070.00

PI Industries Limited stock price has risen by 53 percent since its bottom in September last year and is continuing its trend inside a rising trend channel in both medium and long term charts. This shows that investors over time have bought the stock at higher prices and indicates good development for the company. The stock has given a positive signal from a rectangle formation by breaking up through the resistance at 1059 rupees. Further rise to 1114 or more is signaled. The stock has support at 1010 rupees in the medium term. The volume balance is positive and strengthens the stock in the short term. We behold our recommendation of buy in PIIND given on February 26.

Recommendation one to six months: Positive

Atul Ltd (NS:), Close: 3785.75

ATUL_medium term

Investors have paid higher prices over time to buy Atul Limited and the stock is in a rising trend channel in all time frames from short to long term. Rising trends indicate that the company experiences positive development and that buying interest among investors is increasing. The stock has broken out through the resistance at 3584 rupees and also from a rectangle formation on the upside. Further rise to 3941 or more is signaled. The stock has support at 3570 and 3260 rupees. RSI above 70 shows that the stock has strong positive momentum in the short term indicating increasing optimism among investors. The stock is overall assessed as technically positive for the medium term.

Recommendation one to six months: Positive

Tata Chemicals (NS:) Limited, Close: 619.75

TATACHEM_medium term

Tata Chemicals Limited shows weak development in a falling trend channel in the medium term. However, in the short term, the stock is in a rising trend channel and has just closed above the resistance of 612 rupees. On several occassions, in the past few months, the price has taken support around the same area of 550-560 rupees. This time it has reacted sharply and the stock has risen by more than 11 percent in just two trading sessions. For investors who have the heart to take a risk at this juncture, this stock can be a good bet with a stop loss at 550 or slightly lower on the closing basis. On the upside, there is resistance around 663 and 720 levels. Positive volume balance supports the stock in the short term. The stock is overall assessed as watch in the medium term and buy in the short term.

Recommendation one to six weeks: Positive

Original Post

The analyses are based on the closing price as per May 17, 2019. Maintaining proper stop loss is always recommended.

Disclaimer: All analyses used herein are subjective opinions of the author and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading.





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