We recommend a buy in Omaxe from a short-term perspective. From the charts of Omaxe, it is visible that after forming a double-bottom pattern spanning almost four months, the stock broke out of this pattern in late November 2007. Subsequently, the stock achieved the pattern target and rallied to mark its life high of Rs 613. Later, the stock began to decline. In mid of January, along with the broader market sell off, the stock tumbled and marked its life low at Rs 195. From the stock's life low it has moved up and has retraced more than 23 per cent (fibonacci retracement) of its prior downtrend. The daily momentum indicator has recovered from the oversold zone and is on the verge of entering the neutral region. Moreover, the stock is currently trading above the significant support level of Rs 300. We are bullish on the stock for the short-term and expect its current up move to continue further to our target level of Rs 400. Short-term investors can buy the stock with stop loss at Rs 275 levels.
Via Businessline
Via Businessline
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