1. INDIAN RAILWAY FINCORP LTD.​

Technical View

  • The railway stock connotes the one of the assumption of technical analysis of history repeats itself.
  • The price action on the daily outlook is currently replicating its previous price pattern.
  • The stock displays a healthy primary uptrend.
  • It entered into a consolidation phase following a 134% run-up which is a positive sign.
  • This potentially indicates addition of smart money participation to bolster its primary uptrend.
  • The latter half of the ongoing consolidation comes with a higher high and higher low structure along with signs of momentum spark. This indicates that the intermediate trend is garnering strength.
  • The price action has immediate support at its 50 daily MA and 20 weekly MA.
  • The 50 period volatility on the daily outlook trades at its lower levels diminishing the probability of unruly moves.
  • IRFC is showing high price strength compared to the 50 index and buyers’ demand.
  • We recommend to buy IRFC for the target of 183 with a protective stop at 143.

2. EXIDE INDUSTRIES LTD.

Technical View

  • The stock displays a healthy primary price trend.
  • The price action surged nearly 66% from the March 2024 lows in anticipation of a positive Q4 result.
  • The price action is currently trading in a rounding bottom pattern indicating garnering of bullish strength.
  • The ongoing lateral trend indicates that smart hands that participated in the recent upmove continue to hold their positions complimented by further accumulation.
  • The price strength compared to the 50 index remains strong which is a positive sign.
  • The RSI across daily and higher timeframe are trading well above their median without diverging against the price. This indicates thrust in the price momentum.
  • The stock’s volatility trades at lower level on the daily outlook diminishing the probability of unruly moves.
  • We recommend buying EXIDEIND between CMP-468 for the target of 557 with a protective stop at 435.

3. INDIAN TELEPHONE INDUSTRIES LTD.

Technical View

  • Following a parabolic 198% rise from the August 2023 lows, the price action entered into a multi-month consolidation.
  • The consolidation depth is only 33% indicating that smart hand participated in the previous rally continue to bolster the sideway trend in addition to further accumulation.
  • The lateral trend has observed fakeout and shakeout. This potentially filtered out retail participation while the smart hands continue to participate.
  • This indicates that the dumping of stock by disgruntled owners is no longer driving the price down.
  • Since the shakeout, the price action has seen expansion in volume indicating that the dormant buyers are now getting active.
  • The zone of 277-254 is fair value area gap acting as strong support zone coupled with 50DMA.
  • We reckon to buy ITI from CMP-310 for the target of 370 and use a protective stop at 292.