Reliance Infrastructure (BUY, around Rs544.90, Target Rs580)

On the daily charts, the stock formed a Hanging Man in Wednesday’s trading session. It suggests that the prior downtrend or sideways range is about to end and may reverse to an uptrend. On Thursday, the stock rallied by over 7% confirming the bullish set up.

We continue to remain positive on the stock from technical perspective as the stock has managed to hold on to its short-term support trendline in ongoing market volatility. Moreover, the stock has given a close above its key moving averages. The other supportive technical oscillators are positive and the up move may extend to the levels of Rs585-590, which is 50-DMA for the stock. It is advisable to maintain a stop loss of Rs526 on all long positions.