Buy Bhushan Steel for target of Rs 425: IIFL

MUMBAI: IIFL is of the view that Bhushan Steel has given a breakout from the downward sloping resistance line on the daily chart. It has advised traders to buy the stock for target of Rs 425.

“Bhushan Steel has given a breakout from the downward sloping resistance line on the daily chart. The stock had been stabilizing around its 200-DMA from last three trading sessions. The stock is also forming a triple top formation with resistance around Rs 406-409. Triple Top is a chart pattern with three tops very close in price.

Triple tops have an enormous amount of breakout potential as the price of the stock has moved back and forth within a defined range. A close above Rs 411 accompanied with sporadically high volumes could result in breakout of the above mentioned pattern. Based on above mentioned technical parameters, we recommend traders to buy the stock above Rs 407 with stop-loss of Rs 399 for target of Rs 425,” the report said.

Note: Trading idea valid for time-period of 1-3 days.