DSIJ.in JULY 8 - 21, 2019 I DALAL STREET INVESTMENT JOURNAL (^17)
The stock is consolidating for the past five months in
the range of 1225-1364. With the upward move from the1225 level, the stock made higher lows and parallel
highs. This price action formed an ascending triangle.
Since the last two trading sessions, the trading volumes
are increasing and outperforming in comparison to the
peers. The stock also formed a 43-week 'cup and handle'
formation with 27.7 per cent depth. The MACD line
once again reached above the signal line and the
momentum is picking up on the upside. The RSI (59.95)
is in the bullish zone. It is also meeting all the
CANSLIM criteria. Its price strength (RS) is at 85 and
EPS strength is at 87. It has good buyer's demand (B+)
as institutions are increasing their stakes in the
company. The company has good Group Rank (21) and
consistent EPS growth of over 45 per cent since last four
quarters and is registering more than 20 growth in sales.
The return on equity is 20 per cent. The stock is very
near to the pivot. BUY this stock at 1346.15 with a stop loss of1260. The ascending triangle patterns target is
placed at 1445, followed by1480.
L&T Infotech has formed a very long symmetrical
triangle and it is about to break. The volumes are
increasing for the past four days. The stock is trading
above all the short and long term moving averages. The
stock is clearly trending up as it is forming higher highs
and higher lows since December 2018. The moving
averages ribbon is also showing bullishness in the stock.
The RSI is in the bullish zone and the MACD is above
the zero line and signal line for the past three days. The
MACD histogram is also suggesting that the bullish
momentum is picking up. The stock has formed a
20-week 'cup and handle' pattern with 18.8 per cent
depth. This stock is meeting all the CANSLIM
parameters. Its EPS strength is at 88 and price strength is
- It has good buyers' demand with above average
volumes and good group rank. It has achieved more
than 30 per cent EPS and sales growth since last fourquarters with 31 per cent return on equity. The stock
looks attractive even fundamentally too. BUY this stock at `1763.55 with a stop loss of `1675. The short term target is open towards1985 and the medium term target is2135.
STOCK RECOMMENDATIONS
BSE Code : 532541
BSE Code : 540005
Target 1 .... 1445 | Target 2 .....1480 | Stoploss....`1260 (CLS)
Target 1 ..... 1985 | Target 2 .....2135 | Stoploss....`1675 (CLS)
NIIT TECH ............................... BUY .......................... CMP `1346.
L&T INFOTECH ............................. BUY ........................ CMP `1763.
Disclaimer : Above recommendations are based on various technical parameters and any fundamental input has not been considered for the recommendations. Follow strict stop loss for the recommendation.*LEGEND: n EMA - Exponential Moving Average. n MACD - Moving Average Convergence Divergence n RMI - Relative Momentum Index
n ROC - Rate of Change n RSI - Relative Strength Index(Closing price as of July 02, 2019)DS