Broking firm SMC Global has selected Britannia Industries, Canara Bank and Onmobile Global as technical picks from 1-2 months perspective. Following is the rationale on above mentioned stocks:
The stock closed at 478.05 on November 22,2012. It made a 52-week low at 380 on August 03, 2012 and 52-week high of 599.90 on April 03, 2012. The 200 days Exponential Moving Average (EMA) of the stock on the weekly chart is currently at 417.78.
After a marginal fall, it took support near to its previous lows of 460 levels. As we can see on the charts there was a major spike which even breached its 200 EMA and then rebounded sharply indicating its potential to move northward. One can Buy in the range of 472-476 levels with closing below stop loss of 459 levels for the target of 495-505 levels.
The stock closed at 430.45 on November 22, 2012. It made a 52-week low at 306.25 on August 30, 2011 and 52-week high of 566 on February 17, 2012. The 200 days Exponential Moving Average (EMA) of the stock on the weekly chart is currently at 418.34.
Last week the major index closed in a negative zone but this particular scrip negated the same and traded above its 200 EMA which shows that some accumulation is going with the support of volumes in it. Moreover, the oscillators moved out of its oversold zone, which also determines its strength. One can Buy in the range of 425-428 levels with closing below stop loss of 409 levels for the target of 460-465 levels.
The stock closed at 40.65 on November 22, 2012. It made a 52-week low at 28.85 on July 02, 2012 and 52-week high of 84.15on February 15, 2012. The 200 days Exponential Moving Average (EMA) of the stock on the weekly chart is currently at 117.61.
It is clear from the chart that downward momentum has come to an end and there is a major possibility of an upward journey in the coming weeks. Moreover oscillators and basing at lower levels are also showing that there is a potential of reversal in the near term. One can Buy in the range of 37-39 levels with closing below stop loss of 34 levels for the target of 50-53 levels.
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