SPARKS IN SPARC (CMP:108)

RECOMMENDATION - BUY AT CMP / DECLINES

TARGET- 128 , STOP-98, TIME -T+14 DAYS (APPROX)

RATIONALE -

The mid cap pharma stocks have been showing quite a lot of traction lately. One such stock in this sector is Sun Pharma Advance Research - SPARC.

Wave 1 for this stock was relatively docile unlike its other pharma cousins. The current move to 108 has confirmed a breakout and hence the beginning of wave 3. Based on this fact the target for this stock is likely to be around 170 in this move. However, over the short term 128 seems to be the more reasonable expectation based on the width of the consolidation.

  

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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.

LIBERY SHOES - LIBERTY TO FLY

RECOMMENDATION - BUY IMMEDIATELY

The stock now seems to have the liberty to fly after breaking out of its cage of 90 to 120 !!

TARGET- 148 , STOP-114, TIME -1 MONTH (APPROX)

RATIONALE -

The stock had been trading in a zone of 90 to 120 since many months. Today's move has decisively broken out of the range with very good volumes.

Vigor of the breakout today leaves very little doubt about the beginning of wave 3 - See the diagram to see how the first wave unfolded in neat 5 waves. Since the wave 1 was dosile, a very dynamic wave seems to be in the offering.

The idea is to just pile on to the stock with a stop at 114 (If the stock falls to this level our assumption of wave 3 would be challenged)

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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.

TALWALKARS (247.50)

RECOMMENDATION - BUY AT CMP

TARGET- 294 , STOP-230, TIME -T+14 DAYS (APPROX)

RATIONALE -

The stock had a dream run post its listing on the bourses. A direct play on the consumption story and emergence of the affluent middle class, has brought the stock on the radar of every portfolio manager wanting to generate alpha for his portfolio.

The stock topped out around 260 and has been correcting in a downward sloping channel since then. Today's upmove has decisively breached the upper reaches of this channel with decent volumes. This phenomenon is hinting at the possible resumption of the uptrend.

The brief correction  in terms of time (1.5 months) and quantum (38.20% approx) indicate the innate strength of the stocks benefiting from the consumption boom.

Traders may consider buying the stock at cmp of 247.50 with a stop placed at 230 (if the stock reaches 230, the prognosis of the breakout of the channel would negated)

 

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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.

TVS MOTOR (CMP:77.50)

RECOMMENDATION - BUY AT CMP

TARGET- 89 , STOP-73.50, TIME -T+14 DAYS (APPROX)

RATIONALE -

The stock had been trading in a zone of 71 to 80 since the last couple of months. This period of relative silence can be construed as a pause in the overall trend looking at the structure that has evolved.

The price formation looks like a right angled triangle and today's upmove seems to have resulted in a breakout. Since the width of the triangle was about 9, a target of 89 on the short term looks very imminent.

A fall in the prices to 73.50 however would mean that the stock comes back in the trading range convincingly and the prognosis of a breakout would not hold water. Hence this level may be used as a stop for long positions.

UPGRADE TO WAVE PRO AND GET TIMELY  TRADING CALLS  ON YOUR MOBILE (Rs 100 per call only)

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.