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.
Cipla Limited is a leading pharmaceutical company, best-known outside India for manufacturing low-cost anti-AIDS drugs for HIV-positive patients in developing countries. Pharmaceutical sector has been traditionally a defensive sector which suits investors in times of utter confusion. We don’t really know where the market is headed for the time being so it’s a wise decision to consider including some of the good stocks of this sector in your portfolio. If we look at the technical chart of Cipla we can see a nice cup and handle structure getting formed in recent past and its trading just near its breakout level.
Buy round 320
Event to watch
Breakout with strong volumes
Date of Analysis
The cup of pattern has taken a nice three months time to form which enhances the credibility of the pattern. Right now it’s undergoing a short period of consolidation (the handle) of 1-2 weeks in duration, which tends to be down trending. If you are an aggressive investor then you can take position and wait for the breakout to happen above 340 levels and if you are slightly conservative then the best strategy for you is to enter the stock when breakout actually happens above 340 with large volumes.