Technical Pick - Amar Remedies

We recommend a buy in the stock of Amar Remedies from a short-term perspective. It is evident from the charts of the stock that it peaked out after recording a life-time high of Rs 171 in November 2010 and witnessed a sharp correction thereafter that lasted till mid-December. However, the stock found significant support around Rs 80 and bounced up. This support provided base for the stock during early and late February.

Subsequently, triggered by positive divergence in the daily moving average convergence divergence and daily price rate of change indicators the stock changed its direction. Since then, the stock has been on a modest medium-term uptrend. Moreover, on May 13, the stock bounced up seven per cent triggered by positive divergence in daily relative strength index. The stock breached its 21- and 50-day moving average on Monday. There has been an increase in volumes over past three trading sessions.

We are bullish on the stock from a short-term perspective. We expect it's up move to prolong until it reaches our price target of Rs 108 or Rs 111 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 101.5.

Our Recommendation :

Bought to you by

Ingenious Investor
Equity Research Division

Ravina Consulting
Pattamal Plaza
3rd Cross Kamanahalli
BANGALORE 560084

For Free Stock Advise + Ideas
sowmya@ravinaconsulting.com
Talk / SMS 08105737966

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UTV Software - Buy on declines

We recommend a buy in the stock of UTV Software Communications from a short-term perspective. It is evident from the charts of the stock that since March 2009 low of Rs 182; it has been on a long-term uptrend shaping higher peaks and bottoms. Moreover, its medium-term trend is also up from July 2010 trough of Rs 391. After taking support around Rs 510 in early December, the stock resumed its uptrend. On January 4, the stock surged 5 per cent breaking through a significant resistance level at Rs 570. This was accompanied with unusual volume.

The stock is hovering well above its 21 and 50-day moving averages. The 14-day relative strength index has entered into the bullish zone from the neural region and weekly RSI is on the brink of entering into this zone. Following a buy signal, daily moving average convergence divergence oscillator is featuring in the positive territory implying upward momentum. We are bullish on the stock from a short-term horizon considering its recent break-out. We anticipate it to move higher until it hits our price target of Rs 605 or Rs 620 in the forthcoming trading sessions. Short-term traders can consider buying the stock with stop-loss at Rs 576.

Yoganand D./BusinessLine

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

Pattamal Plaza

3rd Cross Kamanahalli

BANGALORE 560084

For Free Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor