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Published on 9/12/2019 1:48:34 PM | Source: ICICI Direct

Stock Picks Of 9 December 2019 - ICICI Direct

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Glenmark Pharma Ltd.

* The stock is currently placed at the previous breakout area of November 2019 as can be seen in the adjacent chart. We expect the previous resistance to reverse its role and act as support thus provides favourable risk reward set up for the next leg of up move

* The stock has immediate support at Rs317 levels as it is the confluence of the 50% retracement of the previous up move (Rs 268 to Rs 374) and the recent breakout area as can be seen in the adjacent chart

* The stock has already taken 15 sessions to retraced just 50% of the previous three sessions up move (Rs 268 to 374). A slower retracement of the previous up move signals robust price structure

* The daily stochastic is seen rebounding from the oversold territory and has given a buy signals thus supports the positive bias in the stock

* We expect the stock to resolve higher and head towards | 363 levels as it is the 80% retracement of the entire recent decline (Rs 374 to 323) placed at | 363 levels

Recommendation

Buy Glenmark Pharma Ltd @ 328.00-334.00 SL 314 Target 363

 

Jindal Stainless Ltd

* The stock has witnessed a breakout from the triangular consolidation pattern signalling a reversal of the last two years downtrend. The recent breakout offers a fresh entry opportunity to ride the next up move

* The recent breakout is supported by strong volume of more than the 10 weeks average volume of 16 lakh share per weeks signalling larger participation in the direction of trend

* The stock has immediate support at | 36.50 as it is 50% retracement of the recent up move (| 32.00 to 

 40.50)

* The weekly 14 period RSI is in uptrend and is seen rebounding taking support at its nine period’s average signalling strength and validates positive bias

* Based on above technical observations, we expect the stock to maintain positive bias and head towards | 44.50 as it is confluence of the high of March 2019 and 50% retracement of previous major decline (| 72.00 to | 23.50)

Recommendation

Buy Jindal Stainless Ltd @ 38.00 - 39.20 SL 36.50 Target 44

 

Persistent System Ltd 

* The stock recently registered a breakout above the trend line joining previous multiple highs since April 2019 as can be see in the adjacent chart. The share price is consolidating above the breakout area in the last week and is seen moving above its previous week’s high (| 674) on Thursday, thus providing a fresh entry opportunity to ride the next up move in the stock

* The stock has immediate support at | 635 as it is the confluence of the 50% retracement of the previous up move (| 583 to | 688) and the recent breakout area, which is likely to reverse its role and act as support in short-term

* The weekly MACD in uptrend and has recently moved into positive territory signalling strength and validates positive price structure

* We expect the stock to resolve higher and head towards | 735 levels as it is the 61.8% retracement of the entire decline (| 915 to 469) placed at | 735 levels

Recommendation

Buy Persistent System Ltd @ 38.00 - 39.20 SL 635.00 Target :735.00

 

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