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Published on 19/02/2020 2:34:44 PM | Source: ICICI Direct Ltd

Momentum Picks - Navin Fluorine International, Westlife Development By ICICI Direct

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Technical Observations

* The stock is in a strong up trend forming higher high and higher low in all time frame. The entire up move in the last two months has taken support at the rising trend line joining lows since January 2020 as can be seen in the adjacent chart

* The share price, after forming an alltime high of | 499 in the first week of February is seen consolidating in a range in the last two weeks. The stock on Tuesday rebounded taking support at the rising trend line, thus offering a fresh entry opportunity to ride the next up move in the stock

* The stock has immediate support at | 440 as it is the 61.8% retracement of the previous up move from (| 411 to | 499)

* The daily 14 period’s RSI is seen taking support at its January 2020 lows signalling strength and supports positive bias in the stock

* We expect the stock to resume its up move after the last two week’s consolidation and head towards the all-time high around | 499 in coming sessions

Recommendation

Buy Westlife Development Ltd @ 455.00 - 461.00 SL 436.00 Target 495.00

 

Technical Observations

* The share price has been trading in an upward sloping channel formation over past four months, indicating positive bias. Recently stock has formed a higher base at lower band of rising channel, signifying elevated buying demand that augurs well to unfold next leg of up move

* Over past six months stock has witnessed a strong buying demand in the vicinity of 20 days EMA, indicating robust price structure. Currently stocks has resolved out of past three months consolidation underpinned by rising volumes and clocked a new life highs (| 1287), indicating acceleration of upward momentum

* The immediate support is placed at 1300 as it is 50% retracement of current up move (| 1108 – 1287), placed at | 1198

* Going ahead, we expect the stock to extend the ongoing upward momentum and challenge the upper band of rising channel placed at | 1390 in coming weeks

Recommendation

Buy Navin Fluorine International Ltd @ 1250.00 - 1275.00 SL 1198.00 Target 1390.00

 

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