Trading Idea: Buy Videocon & Orchid Chemicals

SHORT TERM TRADING CALL

(Click on Charts for better clarity & enlarged view)
Charts Courtesy: http://www.icharts.in/




BUY: Videocon Industries (CMP 225)
Accumulation Zone: Rs.220-228
Stop Loss: Rs.210
Stop Loss (For High Risk Traders): Rs.200
Targets: T1 240, T2 260, T3 275.

Stock View: The stock has witnessed a break out from a broad trading range Rs.140-200 since last 3 months starting from June 2009. The stock has also witnessed a breakout from a narrow trading range of Rs.180-210 for the month of August 2009. A conical pattern was observed since the second week of August indicating indecisiveness among bulls and bears for this stock.

However, a move above this conical pattern since 24th August gives enough hint for an upside breakout from the narrow conial range of last 1 month and the broad trading range seen since 3 months. Also, the move of last couple of days is backed by higher volumes. Traders can accumulate the stock in the range of Rs.220-228 with SL of 210 (SL of Rs.210 for high risk traders) with substantial higher targets as mentioned in the above call. Traders should have courage to ride out the volatilty of highly inflated markets.




BUY: Orchid Chemicals & Pharmaceuticals (CMP 118)
Accumulation Zone: Small Qty @CMP,
Remaining in Rs.108-114 Zone
Stop Loss: Rs.105
Stop Loss (For Low Risk Traders) : Rs.107
Targets: T1 125, T2 140.


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