ICICI Direct has chosen Sterlite Technologies as "stock on the move" with a time frame of 3 months.
In its report today, ICICI Direct mentions that Sterlite Technologies is seen resolving out of triangular continuation pattern signalling conclusion of the secondary consolidation and resumption of upward momentum in the stock. It provides a good entry opportunity with a favourable reward/risk ratio to ride the next up move.
The report mentions that among oscillators, the weekly RSI is trending higher after resolving above its down trend line connecting November 2014, July 2015 swing highs. The brokerage says, "We believe the breakout past the upper band of triangular consolidation pattern provides necessary thrust for a continuance of the upward momentum to challenge its July-August 2015 highs placed around Rs. 110 levels." The strategy suggested by ICICI Direct advices traders to buy Sterlite Technologies in the range of Rs. 93-95 for a target price of Rs. 110.00 with a stop loss of Rs. 86.00. (Share Manthan, June 08, 2016)
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