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REC Ltd Technical Analysis #32: Buy | Target Rs 158 | Arijit Banerjee

OUR RECOMMENDATION

CMP#144
IdeaBUY
Buy Range136 – 145
Target158 – 165
StopLoss*130
Duration20 – 25 Trading Sessions
Potential Return^10 – 15%
CMP#IdeaBuy RangeTargetStopLoss*DurationPotential Return^
144BUY136 – 145158 – 16513020 – 25 Trading Sessions10 – 15%

# CMP on Mar 05, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 151.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

REC Ltd is a nonbanking financial company providing financial services for power generation, transmission, and distribution projects in India. It offers long term loans, medium and short term loans, debt refinance, equity and equipment finance etc. In Q3FY19 the company’s net income was improved by 29% to Rs.7252 crore and Net Profit jumped by 16% YOY to Rs.1274 crore.

Stock Data
NSE CodeRECLTD
Sectoral IndexNifty Financial Services
52W High144.9
52W Low89
Face Value10
Relative Performance_REC Ltd vs Nifty Financial Services

TECHNICAL OBSERVATIONS (WEEKLY)

  • Stock Price recently make Breakout above upward sloping channel from weekly charts.
  • Volumes have gone up along with price rise.
  • Indicators like MACD and RSI turned bullish on Weekly Charts.
  • The stock formed well defined Ascending Triangle Pattern over the last 6 months and a breakout above the upper side shows further bullishness.
REC Ltd Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • We have seen Higher Tops and Higher Bottoms formation in Daily Charts.
  • The stock is clearly in Uptrend and last few days stock is trading above 15 days Moving Average.
  • The recent closing above the Upper Bollinger Band.
REC Ltd Daily Chart
REC Ltd Daily Chart

MONEY MANAGEMENT AND TRADING RULES

1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.

ANALYST SUMMARY

This research analysis is prepared by Arijit Banerjee, CMT, CFTe. An engineering graduate developed an early interest in Trading since the age of 20. He is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and also has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts (IFTA), USA. His contribution to the market research was recognized by SEBI, the Regulatory Body of Indian financial market and given him the registration number INH300006582 as a Research Analyst. Over the years, he has gained experience in Technical Analysis with a demonstrated history of working in different asset classes. Himself as a trader, he has trained and continues training novice and experienced traders to become successful, confident and profitable in the financial market.

Disclosure

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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