we recommend buying the stock at CMP for the target of Rs 335 and keeping a stop loss at Rs 294, says Vinay Rajani of HDFC Securities.
Moneycontrol Contributor
@moneycontrolcom
Vinay Rajani
Marico has corrected more than 22 percent from its August month high of Rs 388. The RSI on the daily charts has reached an extremely oversold zone.
On Monday, the stock found support in the gap formed on 12th February 2018 and rebounded from lower levels. The FMCG Index itself has witnessed a healthy correction from its September month high and the probability of a strong bounce-back has also increased.
Considering the technical evidence discussed above, we recommend buying the stock at CMP for the target of Rs 335 and keeping a stop loss at Rs 294 on a closing basis.
Disclaimer: The author is Technical Analyst, HDFC Securities. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.First Published on Oct 9, 2018 11:06 am