Buy Coal India for target of Rs 370: SMC Global
Last close: 5413
Markets was consolidating in the narrow range on Wednesday trade, ended flat due to marginal selling pressure were witnessed in heavyweights Reliance, Bharti Airtel and L&T. Technically, consolidation in narrow range after decent rally is always a healthy sign and signifies the underlying strength of uptrend. Overall Nifty is forming a higher highs and higher lows on daily chart which indicates the bullishness of benchmark indices. Nifty is likely to seek support around 5395-5370 and on the upside, face resistance around 5445-5470 for Thursday.
Last close: Rs 93.90
Target: Rs 90
Stock has given a sharp upside rallied from 77 to 96 levels in short span while forming the higher highs on daily chart. On Wednesday, stock moved in narrow range and formed the reversal candle on daily chart so some correction can be expect from current levels. RSI has also signaled bearish so sell this stock for the downside target of 90 with SL of 96.45
Last close: Rs 441.20
Target: Rs 456-460
Stock is continued to moving higher with facing hurdle of 440 levels as resistance mark. Technically stock has formed the “Ascending Triangle" formation on daily chart which is bullish in nature. For confirmation, stock has given the pattern breakout in last traded day with above average volume and also breached its 200EMA. Therefore, one can initiate long position for the upside target of 456-460 levels with SL of 434.
COAL INDIA (LONG)
Last close: Rs 355.75
Target: Rs 370
Stock was corrected sharply from 365 to 300 levels with correction in the broader index. It also retraced in the same manner while the reversal witnessed in the overall market. Then after, it traded sideways in range of 340-360 levels from last few sessions. There is no as such breakout of range but the movement of last traded day indicates that there will be a strong spurt for near term. Stock is comfortably trading above its 200EMA which shows the strength of stock. Buy this stock for the upside target of 370 levels with SL of 349.
Source: Mudit Goyal, technical analyst, SMC Global
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