Thursday, January 15, 2015

Buy Everest Industries; target of Rs 378: ICICIdirect



"The share price of Everest industries looks ripe for next up move after five weeks of consolidation above its 2010 and 2013 peaks (Rs 267) and therefore offers fresh entry opportunity. Technically the robust price structure is clearly exhibited as stock price consolidated in a narrow range wherein it retraced its preceding up leg (242-321) only by 50% while consuming equal time taken for rally (5 weeks). 

Such price/time behaviour signals constant appetite to own the stock at higher levels." "Earlier share price broke past its multi year highs during November 2014 pointing towards major shift in long term price structure thereby lifting the stock price in higher orbit. We expect stock price to head towards 380 being the 123.6% extension of preceding up leg (242-321) as projected from December 2014 lows of Rs 280." "On the volume front it has been double its 50 week average ~ 1.5 lakh shares during rallies which boost longevity of up trend. The rising MACD which is firmly placed in positive territory supports overall bullish momentum in the stock.

Buy Everest Industries in the range of Rs 317.00-323.00 for a target of Rs 378.00 with a stop loss below Rs 295.00 on a closing basis", says ICICIdirect.com research report.

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