Anu Jain of Omniscient Securities is of the view that one can hold Jaiprakash Associates.
Jain told CNBC-TV18, "Jaiprakash Associates made a high of Rs 510, it was the favorite of the market and then suddenly there were some rumors and it became a do not touch and everybody just wanted it off and it came down to about Rs 196 levels. Now Rs 198 to Rs 202 are quite strong support zones for this particular stock. If it breaks that, it would go down to Rs 174, but the way it held on to that just sub Rs 200 levels, showed that it was a very good support level for it. Yesterday it is bouncing up right up to Rs 230, and the fact remains that there is no real resistance from here to Rs 280 on the charts. It can scale up to Rs 280 at this particular jump up or bounce back, which we can see, not to say that the script has been showing any great strength right now. But after such a drastic fall, a bounce back is very much on the cards and about Rs 280; it shows where it will probably scale up to if the market remains benign. That level is where it will go over its 10 DMA, 20 DMA and the chart should substantially get better."
She further added, "How it consolidates at that level and moves ahead from that would be really important. Once if it can go over that then, the next resistance is Rs 320. So given the current set of circumstances, I don’t see that this chart, would stay to be weaker, it would probably go up to Rs 350, consolidate there after to the Rs 280 level once the market settles down. So it’s going to take time, its going to take patience but I think one should hold on to the stock."
Link to the article: http://www.moneycontrol.com/india/news/stocks-views/hold-jaiprakash-associates,-says-a-jain/329863
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