Technical Stock Pick - Buy Shriram Transport Finance Ltd For Target Rs. 862 - HDFC Securities
After correcting sharply from a high of 1367 touched in February 2020, Shriram Transport foundsupport around the 440levelsa few months back.The stock hadalso previously found support around these levelsmany years back, thereby making it a strong support on the long term charts. The stock has since then rebounded and gradually moved higher, making higher tops and higher bottoms in the process.
Today,the stock has broken out of the690-714narrow trading range on the back of healthy volumes. This augurs well for the current uptrend to continue.
Technical indicators are giving positive signals as the stock trades above the 13-day and 50-day SMA. Daily and weekly momentum readings are in rising mode and not in overbought territory.
We believe the stock is ready to continue the next leg of its underlying uptrend and has the potential to move higher in the coming weeks. We therefore recommend a Buy at CMP and adding more on any dips. Our entry levels, along with stop loss and targets have been mentioned above.
Buy Shriram Transport Finance Ltd Up to 2-6 months CMP 720 Target 793/862 SL 655
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