Recommendation - BUY AT CMP
Target-940, Stop-827, Time - t+4 days
Rationale -
Given yesterday's fall in the indices, skepticism about the short term bullishness has set into the minds of the market fraternity. This would mean that the trading money would like to hide into the so called defensives (of course no one wants to move to cash, given the market momentum). One such defensive stock is COLPAL which has corrected a shade below 10% in the last week or so.Oversold signals are imminent on the hourly charts. Moreover, this fall has the form of a zig zag that has achieved its target. The downside is fairly protected in the zone of 840-850 (the erstwhile consolidation from which the stock broke out in frenzy).
The robust chart set up and rotation into defensive stocks is like to result in a short term upmove for this scrip.
Disclaimer : The recommendations mentioned herein are for educational purpose only. One should not take buy/sell decisions based on the above analysis which is prone to errors. The author does not undertake any liability whatsoever arising out of profits/losses accruing from using the above analysis.
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