Trading Guide: Route Mobile among 6 stock recommendations for Wednesday

After showing range-bound action in the past one month, the stock price has witnessed sharp upside bounce in the last two weeks. The current chart pattern signals possible completion of bearish trend and a formation of important bottom reversal for the stock price at Rs 1,136 in the later part of January. We observe an upside breakout of key overhead resistance of the down sloping trend line at Rs 1,170 levels. The daily/weekly RSI shows positive indication.

One may look to buy the stock at CMP (Rs 1,332), add more on dips down to Rs 1,280, wait for the upside target of Rs 1,440 in 3-5 weeks. Place a stop loss of Rs 1,250.

(Nagaraj Shetti, Technical Research Analyst, HDFC Securities)

The weekly timeframe chart of Oracle Financial Services (OFSS) indicates a sustainable upside bounce in the last few weeks. We observed a formation of the broader triangle pattern, unfolding over the last few months. The stock price is in an attempt to stage an upside breakout of the triangle at Rs 3,220-3,230 levels. Hence, a sustainable move above this hurdle is expected to bring sharp upside momentum for the stock price ahead. The negative chart pattern like lower tops and bottoms (during Nov 21 to Oct 22) have been completed as per weekly chart and the stock price has started to move up as per the positive pattern like higher tops and bottoms recently. This is a positive indication.

One may look to buy OFSS at CMP (Rs 3,200), add more on dips down to Rs 3,075 and wait for the upside target of Rs 3,460 in the 3-5 weeks. A stop loss can be at Rs 2,990.

(Nagaraj Shetti, Technical Research Analyst, HDFC Securities)

SRF is seen to be taking support from its previous support zone and breaking a downwards sloping trendline with a strong bullish candle on the daily timeframe and the supertrend indicator is also indicating a bullish trend. This can be used to strengthen the bullish view.

Momentum oscillator RSI (14) is at around 61 on the daily time frame, indicating strength by sustaining above 50 and the ichimoku cloud is also suggesting a bullish move as the price is trading above conversion and base line. The above factors indicate that a bullish move in SRF is possible for targets up to Rs 2,600. One can initiate a buy trade in the range of Rs 2,310-2,318 with a stop loss of Rs 2,150 on daily closing basis.

(Mitesh Karwa, Research Analyst, Bonanza Portfolio)

Shares of The stock is seen to be trading in an upwards sloping parallel channel pattern on the daily timeframe from the last nine months and is currently seen to be taking support from a support trendline. The stock has made a bullish engulfing candle on the daily timeframe, which supports the bullish view. Momentum oscillator RSI (14) is at around 50 on the daily time frame, indicating strength by sustaining around 50. The 200 EMA is at Rs 628 and the stock is comfortably trading above it.Vikas Nigam settled higher, locked in the 5% upper circuit at Rs 66.7 after the PSU company was appointed the project implementation agency for the UTF Harbor project in Maldives.

The above factors indicate that a bullish move on the counter is possible for targets up to Rs 730. One can initiate a buy trade in the range of Rs 685-689 with stop loss of Rs 660 on a daily closing basis.

(Mitesh Karwa, Research Analyst, Bonanza Portfolio)

HBL Power seems to be reversing its decline from Oct 2022 high of Rs 120 to Dec 2022 low of Rs 90. On the weekly time frame, price is showing signs of a clear uptrend as we see a pattern of higher highs and higher lows. The low to low cycle is quite predictable as prices show a tendency to make lows every 4-6 months.

Buy for a rally to Rs 125 and above that to Rs 140. Keep a stop below Rs 95 and hold for at least 6-8 weeks.

(Manish Shah. Independent Analyst)

Like many stocks in the auto sector, price action in Escorts Kubota shows a wide range between Rs 2,350 and Rs1,950. The support at Rs 1,950 holds as price moves above the intermediate swing high of Rs 2,100. Price has just started to trade above its 50 Day Moving Average and this is a sign of revival in prices. Daily timeframe shows a break out of an inverse Head and Shoulder pattern. On the upside, price is likely to see a rally to Rs 2,400 and above that to Rs 2,600. Keep a stop below Rs 1,950. Hold for 6-8 weeks.

(Manish Shah. Independent Analyst)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)