Actionable ideas

Actionable ideas

REL (Accumulate, CMP Rs1,987, Target Rs2,250)
The stock made a high of Rs2,641 in the first week of January 2008. However, it fell sharply to the levels of Rs1,200 during the period of correction in the markets. The stock has found support at its 200-day moving average and has also retraced around 61.8% of the previous upmove. The daily RSI is above the neutral area, indicating an uptrend. Other
momentum oscillators are suggesting more upside probabilities in the stock. We feel the stock will continue its recent uptrend, short term traders can accumulate the stock for a price target of Rs2,250. It is advisable to maintain a SL of Rs1,900 on all the long positions.

Apollo Tyres (Accumulate CMP Rs47, Target Rs65)
The stock recorded a significant breakout past the long term resistance trendline and rallied onto a high of Rs63 levels. The recent sharp correction has seen the stock hitting a low of Rs38.5 levels and stabilizing in the Rs44-45 range. The monthly RSI is following the price movements whereas the long term MACD is still in a strong buy mode. Keeping in mind the above mentioned technical evidences we recommend investors to accumulate the stock at current levels and on declines to supports of Rs40-42 levels for initial targets of Rs62-65. A SL of Rs37 is recommended on all long positions.

Among the major bulk deals on Thursday, Deutsche Securities has purchased over 68 thousand shares of UB Engineering at an average price of Rs135. Merrill Lynch bought 2.5 lac shares of Horizon Battery Tech at an average price of Rs300. While Citigroup Global sold over 6.7 lac shares of Nahar Industries.