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RETAIL RESEARCH
CMP #
Rs.815
Recommended Action
Buy between CMP & Rs.750
Targets
Rs.905/995
SL*
Rs.730
Time Horizon
1-2 Months
Note: * Place stoploss as per daily closing basis. Recommended to stagger buying/selling. If first target achieved, then revise stoploss to buying/selling price.
# cmp at the time of issue of call in jaamoon.
Observation:
The attached weekly timeframe chart of BHARAT FINANCIAL INCLUSION LTD (BHARATFIN-earlier SKS Micro Fin) has been
indicating a sharp upside rally over the last many months.
The stock price has moved up excellently as per the positive sequence of higher tops and bottoms. Every dips in the stock
price has been absorbed by bulls to move in to new swing highs.
Presently, we observe an upside bounce back in the stock price this week after the formation of bottom reversal pattern
around Rs.733 levels (formation of yet another higher bottom).
The formation of back to back hammer type pattern of the previous two weeks, after a reasonable decline could be
considered as an impending reversal signal as per larger timeframe. This weeks upmove could be considered as a
confirmation of the bottom reversal.
Weekly 14 period RSI has turned up from near 65 levels and there is a high possibility of a formation of negative divergence
pattern in the stock price and RSI in future (higher high formation in the stock price and lower high in RSI). This expected
pattern of divergence could achieve the upside target price of the stock price.
The overall chart and momentum pattern in BHARATFIN suggesting a long trade set up. Look to buy this stock as per levels
mentioned above.
RETAIL RESEARCH
P age |1
RETAIL RESEARCH
RETAIL RESEARCH
P age |2