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Buy KNR Construction with a target of Rs 205: Nandish Shah

16 October, 2018 5:03 AM
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Buy KNR Construction with a target of Rs 205: Nandish Shah

We recommend buying KNR Construction for the upside target of Rs 205, and keep a stop loss below Rs 178, says Nandish Shah of HDFC Securities.

KNR Construction has been one of major underperformer since the last few months, which has fallen nearly 50 percent from the December high and has been in an oversold zone since last many weeks.

Oscillator like RSI is showing positive divergence where the stock price has made a new low and Oscillator has formed a higher low. This setup indicates that bears seem to have lost the dominance gradually and there could be a chance of trend reversal for short term.

On last Friday, the stock price also managed to close above its 5-day SMA, indicating a bullish trend for the short term. We believe that mid-cap and small-cap stocks which have fallen very sharply during CY18 can outperform now. Therefore, we recommend buying KNR Construction for the upside target of Rs 205, and keep a stop loss below Rs 178.

Source: moneycontrol.com

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