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Published on 6/07/2020 1:49:08 PM | Source: ICICI Direct

Stock Picks - Amara Raja Batteries,Dhanuka Agritech,Tata Elxsi By ICICI Direct

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Amara Raja Batteries

* The stock has generated a breakout above the falling trendline joining highs of Jan’20 (| 813), Feb ‘20 (|790) and Jun’20 (| 689) signalling strength and continuation of the up move thus offering fresh entry opportunity

* It has recently formed a higher base above the 200 days EMA (placed at | 644) as can be seen in the adjacent chart signalling positive price structure

* We believe, the stock has strong support at | 635 levels, as it is the confluence of the rising 200 days EMA (| 644) and the almost identical lows of the last three weeks placed around | 635 levels.

* Among oscillators, the daily 14 periods RSI has generated a buy signal moving above its nine periods average thus supports the positive bias in the stock

* We expect the stock to maintain positive bias and head towards | 750 levels as it is the price parity of the previous up move from | 536 to | 685 (685-536=149 points) as projected from the June low of | 601 signalling up side towards | 750 (601+149=750) in the coming sessions

Buy Amara Raja Batteries Ltd @665.00-680.00  Target 748.00 SL 634.00

 

Dhanuka Agritech

* The share price is in strong up trend forming higher peak and higher trough in all time frame. It has registered a resolute breakout above the bullish flag pattern signalling continuation of the positive trend and offers fresh entry opportunity

* We believe, the stock has strong support at | 680 levels, as it is the confluence of the rising 20 days EMA which has recently acted as strong support and the 50% retracement of previous up move (| 560 – 799), at | 680 levels.

* Structurally the stock has already taken 10 sessions to retrace less than 50% of the preceding 10 sessions up move (| 560-799). A slower retracement signals robust price structure

* Among oscillators, the daily stochastic has rebounded from the oversold territory and has generated a buy signal moving above its three periods average validating bullish bias

* We expect the stock to maintain positive bias and challenge its all time high around | 799 levels in the coming sessions

Buy Dhanuka Agritech Ltd @ 710.00-725.00  Target 790.00 SL 678.00

 

Tata Elxsi

* The share price has logged a resolute breakout from a bullish pennant pattern signalling continuation of the positive trend and offers fresh entry opportunity

* The stock is in up trend forming higher high-low signalling positive bias. The base of the bullish pennant pattern is placed at the 20 days EMA highlighting strength

* The breakout is supported by strong volume of more than double of the 50 days average volume of six lakhs share per day indicating larger participation in the direction of trend

* We believe, the stock has strong support at | 840, as it is the lower band of the recent consolidation and the 50% retracement of current up move (| 740 – 943), at | 841.

* Among oscillators, the daily stochastic recorded bullish crossover above its three periods average, indicating positive bias

* We expect the stock to resolve higher and gradually head towards | 990 in coming sessions as it is the 161.8% external retracement of recent decline (| 943 to 847) placed at | 990 levels

Buy Tata Elxsi Ltd @ 880.00-895.00  Target 990.00 SL 840.00

 

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