Just Dial (475.65)

Recommendation: Buy

This stock is bottoming out. It fits our criterion of a low-risk potential high gain candidate. Its latest weekly chart shows that with high volume activity it crossed the 50-week EMA @445 last week; we are going to use this as our stop-loss levels—for all short-term positions, any close below this level of 445 would be our stop-loss. Our target would be 533.

However, those who are willing to buy it for the long term should use a stop-loss (if, at all) of a weekly close below 397. Our long-term target for the next two years would anywhere between 800 and 1050.

Apart from a clearing bottoming out formation on the price chart, it is showing strongly bullish crossovers of short and medium term moving averages on both the weekly and daily charts. Not just that it is also showing strong positive divergences on oscillator charts indicating the potential firm upswing in the making.

Glaxo Smithkline Pharma (2660):

Recommendation: Buy

This MNC pharma stock has finally signaled that it is headed for a fresh upswing as it has decisively crossed its 200-day EMA around 2560, and it has sustained above the moving average for four consecutive days along with its 13-day EMA @2548 is moving up sharply to post a bullish crossover with the 200-day EMA.

Again, it fits our criterion of low-risk bet with a strong potential upside. Initially, it is likely to face some supply pressure between 2735 and 2770—once this price range is taken out decisively, which it would eventually for sure given its price chart patterns Again here, the stock in question is showing strong positive divergence on oscillator charts on both the daily and the weekly charts while on the monthly chart strongly bullish golden crossover are about to take place on several moving averages suggesting strong potential upside here. Monthly MACD is about to give a buy signal as well with the oscillator already moving upwards and just a tad lower than its trigger line.

Our short-term target is between 2735 and 2770 with a stop below 2610 on the close while we suggest a stop below 2550 on weekly closing prices for investment positions. However, here again based on the chart patterns, we suggest re entry as and when the stock bounces back above 2550-again for it would move up going forward, and its long-term outlook is quite bullish. Our long-term target for the next two years is anywhere between 3500 and 4000.

Statutory Disclaimer:

Both the above recommendations are based on technical parameters. Please use the stop-loss for sure. Once the stocks advance you can trail.  The decision to trade on the above recommendation would be solely yours and any gain or loss through trading on the stocks based on the above recommendations are also solely yours.