Reliance Infra BUY & Hold around Rs1,114, Target Rs1,1155 & 1177:
The stock is trading 28% lower than its 52-week high of Rs1,404 in October 2009, but higher than its low of Rs45 in March 2009. A detailed study of Reliance Infra shows a distinctive pattern emerging which signals a temporary bottom. The stock has broken out (as seen in the daily chart) from the overall base-like pattern carved during the past five-weeks. In fact, the last couple of trading weeks represents a high level bullish congestion area between Rs1,092-1,056. We believe that the current bullish consolidation is likely to lead to a potential upside, once the 50-DMA is broken. We recommend traders to buy the stock in the range of Rs1,095-1,114 for a target of Rs1,155 and 1177 . We advise traders to maintain a stop loss of Rs1,080 & trail accordingly.
