Market Trading Guide: Berger Paints among 4 stock recommendations for Thursday - Stock Ideas - Economic Times
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Stock Ideas
“Market may go sideways after a sharp rise and that may be considered as healthy in the long run. Overall structure shows that the index may witness consolidation or profit booking from higher levels. However, an attempt to test 17950-18000 can be ruled out. Traders may find buying opportunities if the 17700 level is protected,” Om Mehra, Equity Research Analyst, Choice Broking, said.
Market Trading Guide: Berger Paints among 4 stock recommendations for Thursday - Stock Ideas - Economic Times Read More
Continuing their winning streak for the fifth straight day, Nifty topped 17,800 levels at the close. Meanwhile, broader markets also ended with marginal gains.
GNFC has given a strong breakout on the daily chart with a sharp surge in volumes. The stock has broken out from a falling channel pattern, which was in force for the last 2-3 months. The positive divergence was clearly visible on the daily chart, which confirms the buy signal. The lower-end support is at Rs 550, and the potential upside targets are Rs 625/640.
Berger paint has given a breakout from an inverse head and shoulder pattern with a rise in volume. The momentum indicator RSI has also given a positive crossover which confirms the buy signal. The MACD indicator has given a zero line crossover, confirming a double buy signal. The lower-end support is at Rs 575 and the potential upside targets are Rs 625/640.
After a great recovery, the price has formed an Ascending Triangle Pattern indicating a bullish trend may continue in the near term. In addition, Technical indicator ichimoku cloud suggests that the price is trading above the conversion line, now acting as a Support for the stock. The momentum indicator Stochastic RSI suggested also a positive crossover confirmingthe long position.
The stock has given a breakout of a ‘Falling supply trend line’ on a Daily chart. Importantly, the price movement is backed by good volumes. The overall structure of the counter is very Bullish, as it is trading above all of its important moving averages. In addition, the price is trading above the cloud, which shows a positive trend in the counter. A momentum indicator RSI (14) reading is above 55 levels, which adds more strength on the upside.
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