Wednesday, 1 January 2014

Buy and accumulate: Speciality Restaurants (BSE: 534425)


Speciality Restaurants (CMP- 129)
Analysis:
  • Stock was starts correcting from April 2013 to August 2013 as shown to above chart and then starts consolidating. Stock is making trend reversal price pattern on daily chart.
  • Stock is facing resistance at 129-130 shown by downward slopping trend line (Blue). Good momentum would be seen on closing above these 130 levels.
  • Stock is tagging upper Bollinger band and immediate drag to inside the bands but renew its upward movement by tagging upper Bollinger band again shows bullish sign.
  • The momentum oscillator RSI, stochastic & ROC suggest buy signal.
  • Volume picked up from past couple of months as shown by arrow which seems good accumulation in this counter.
  • Stock is above its 20 days SMA, 50 days EMA and 100 EMA which suggests the stock is in up trend.

Considering above all factors,


Buy Speciality Restaurants at CMP- 129 and add on dips to 125 for the possible target 152 with the stop loss of 122 on weekly closing basis. Time horizon is 3-4 months.


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