Three potential candidates to ride on

Published October 26, 2018

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As per yesterday's close, we have three interesting stocks today that can turn out to be good opportunities in the short to medium term.

Info Edge (India) Limited (NAUKRI.NS) Close: 1607.50
Investors have paid higher prices over time to buy Info Edge (India) Limited and the stock is in a rising trend channel both in the medium and long term. Rising trends indicate that the company experiences positive development and that buy interest among investors is increasing.

The stock recently tested a support level at 1400-1375 before turning its head up again. The same level now can be used as an intermediate support until broken otherwise.

The Info Edge stock is close to its resistance around 1670 rupees, which if broken can initiate a new buy signal. The momentum indicator RSI is rising and positive and supports the underlying trend. The stock is overall assessed as technically positive for the medium term.
Investtech's outlook: Positive

Jet Airways (India) Limited (JETAIRWAYS.NS) Close: 229.15

Against all market odds, Jet Airways on Thursday went up by 3.75 % to close at 229.15 rupees. Volume balance is positive, which indicates that the number of buyers are already taking over sellers.

The stock recently touched a bottom of 171 early this month and now has broken out from a downward trend channel. Last time it reversed from the same level was on January 2012, more than six years ago.

If we look at the full history of Jet Airways, the stock has been in a sideways trend since 2010, trading between 905 on the upside and 170 on the downside. Hence this one month's price behaviour along with the breakout from the trend channel if combined together could be an early indication of a trend reversal. However, this cannot be confirmed unless we see another round of higher lows and higher highs in coming weeks.

On the upside, there is resistance of 300 rupees or 31 % higher than Thursday's close, shown in the short term chart. There is major support at 170 rupees which is 26 % from current price. Consequently the risk reward at this point is almost equal.

One must keep a close eye on its short term price action to find an opportunistic entry and proper stop loss levels.
The stock has average monthly volatility of 24 percent.
Investtech's outlook: Watch

Analysis of BATAINDIA  for all time frames can be read on our website.

The analyses are based on closing price as per October 25, 2018. Maintaining proper stop loss is always recommended.