Short term trading call Cadila Healthcare Ltd - BUY
Posted: Thu Mar 23, 2017 11:36 am
Cadila Healthcare Ltd - BUY
CMP: Rs 441, 3 Months Target: Rs 514, Stop Loss: Rs 397, Upside: 16.6%
Cadila Healthcare Ltd. is trading in a strong higher top higher bottom chart structure. Analyzing the longer time frame, on weekly charts, the stock has given a symmetrical triangle breakout while on monthly charts it has given a continuation pennant pattern breakout. Tracking its recent F&O activity, the stock is continuously forming long positions with open interest going up by 19% and the stock price rising by 3% in the March F&O expiry. An increase in cost of carry with a rise in implied volatility indicates a continuation of this uptrend up to Rs 514 levels, which coincides with its 200% retracement from its previous trading range of 53 points. This suggests Cadila Healthcare is all set to resume its northbound journey. The stock has a potential first target of Rs 514, translating into 16.6% returns.
CMP: Rs 441, 3 Months Target: Rs 514, Stop Loss: Rs 397, Upside: 16.6%
Cadila Healthcare Ltd. is trading in a strong higher top higher bottom chart structure. Analyzing the longer time frame, on weekly charts, the stock has given a symmetrical triangle breakout while on monthly charts it has given a continuation pennant pattern breakout. Tracking its recent F&O activity, the stock is continuously forming long positions with open interest going up by 19% and the stock price rising by 3% in the March F&O expiry. An increase in cost of carry with a rise in implied volatility indicates a continuation of this uptrend up to Rs 514 levels, which coincides with its 200% retracement from its previous trading range of 53 points. This suggests Cadila Healthcare is all set to resume its northbound journey. The stock has a potential first target of Rs 514, translating into 16.6% returns.