5 Stocks of the week

Recommendations for the week -

Amid the prevailing volatility and correction in benchmark equity indices Sensex and Nifty, We recommends following five stocks for the week.

Balrampur Chini Mills

Buy this stock above Rs 166 with a short term holding target of Rs 178.

Momentum is likely to return to this stock.

After a throwback, the Weekly MACD has shown a positive crossover and it is bullish trading above its signal line.

A engulfing bullish pattern has occurred near the strong pattern area support which is bullish.

RSI has rested at a minor double bottom and has turned back.

Rashtriya Chemicals and Fertilizers

Buy this stock above Rs 92 with medium term target of Rs 100.

The stock qualifies for a medium term buy.

The stock broke out on the upside from an otherwise descending pattern.

It failed to clear the Double Top Resistance at Rs 99.60 comprehensively and saw nearly 14 per cent corrective decline from the highs of Rs 106.40.

A bullish belt hold pattern which is a bullish reversal pattern and is often effective.

Can Fin Homes

Buy this stock above Rs 2,882 with short term holding target of Rs 3,030.

A technical pullback is expected in this stock.

After a corrective decline, the stock took support at its 100-DMA and at this place a bullish engulfing candle has emerged.

This is followed by a buy over Stochastic with a bullish divergence which is a positive sign.

Biocon

Buy this stock above Rs 340 with medium term target of Rs 355

The stock is likely to see a technical pullback.

After dipping below 200-DMA intraday, it has bounced back has had held on to the 200-DMA at Close levels which is a major support area.

In the process, a bullish engulfing pattern has occurred followed by a buy signal over Stochastic with a bullish divergence.

Tata Elxsi

Buy this stock above Rs 1,605 with medium term holding target of Rs 1,750.

The stock qualifies from a swing trade.

It halted its decline near multi month pattern support and this also lies in close vicinity of another major support of 100-DMA.

The MACD has started to flatten and is likely to change trajectory in coming days.

This stock also lies in leading quadrant of the IT Index which is likely to continue to improve both Relative Strength and Momentum when benchmarked against NIFTY.

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