Here’s why Mehul Kothari expects a turnaround in Birla Corp, IEX
Indian Energy Exchange (IEX)
Buy Near: Rs 142
Target: Rs 156
Stop Loss: Rs 134
The stock has been highly oversold. The weekly RSI is turning from the historical support. Also the stock found support at the placement of falling trend line.
As per the derivatives data, we are witnessing some unwinding in 140 strike Call option and that seems to be short covering. Thus, we advise traders to buy it in the range Rs 144 – Rs 140 with a strict stop of Rs 134.
Buy Near: Rs 965
Target: Rs 1,020
Stop Loss: Rs 930
Birla Corp has been under pressure since quite some time but at this juncture it’s trading near its crucial support. Previously the stock turned from this level and we saw a rally towards Rs 1,130.
On the daily chart, the stock has formed solid base near Rs 940 which is looking lucrative. Thus, we advise traders to buy the stock on dips near Rs 965 with a strict stop loss of Rs 930.
(Mehul Kothari – AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal).
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