Trading Call: United Spirits
The FMCG Index continues to remain a relative outperformer among all sectoral indices and consequently we pick our next week’s bet from this sector as well.
McDowell-N (CMP: 2376)
There are several short term bullish characteristics in this chart as listed below.
1. The weekly chart shows a multi-month support at 1850 regions.
2. A break-out gap is seen in daily chart on 31st May 2017. The previous resistance at 2180 was taken out with this gap.
3. The daily chart also shows that a previous resistance at 2415 region was successfully negotiated by the stock. Now it has pulled back, giving a buying opportunity.
4. Stochastic on Daily Chart further testifies for a pull back within intermediate uptrend.
Buy McDowell above 2415 with Stop Loss at 2335 & Potential Target 2590
