LIC Housing was in a trading range of 245 to 280 level for last one year. But in Mid December, It broke out from the level of 280 and touched a 52 week high of 300. After that it went into a sharp correction and again trading in that 280 level. Now in the process the stock has created a bearish Head & Shoulder pattern.
No one needs an introduction of Infosys. The IT bellwether is always there in the watch list of a serious stock market investor. This stock has never disappointed long term investors but recently it has been generating opportunities for short term investors too. Just have a look at the white spots in the chart below.
Excellent growth since inception, high profit margin, and a consistent performance, eClerx has been one of the most interesting companies in last few years. It has a terrific management team that has taken this company from nowhere to a company which generates about 500 crore in revenue today.
Bharti as a telecom provider can confidently boast of most loyal customer base in India and as a telecom provider offers most wide range of products having operations in almost 19 countries across Asia and Africa. If we look at the technical chart of 2011 we can very well identify that soon it might test its long term support of 315. It has already broken the head and shoulder neckline intermediate support of 345 convincingly and today it had a gap down opening too.
Recommendation (Best Strategy)
Bullish - Buy Round 320 Sell Round 400
Bullish – 400
Bullish – 305
Event to watch
Bullish - Nifty trades above 4650
Date of Analysis
The best strategy to play with this stock for short term gains is buying round 320 with strict stop loss of 305 and selling round the three targets of 355, 368 and 400 where ever you are comfortable with the level of profit. RSI is round 33 currently which indicate that it’s oversold and if market sentiment improves it can outperform the nifty. Mind it; you should not hold the position below 305 as it will become an ideal candidate for short selling. Head and shoulder neck line is already broken and if the long term support of 315 gets broken it will definitely enter a downtrend.