Buy Eimco Elecon for target of Rs 575: Ventura

MUMBAI: Bharat Gala, President, Ventura Securities has advised investors to buy Eimco Elecon for target of Rs 575.

“For the past one year, Eimco Elecon has been trading between Rs 200-350 area. It has attracted buyers at Rs 200-220 area on various instances. Recently the stock gave Up Gap Breakout at Rs 273 levels with decent volumes. The trend indicator shows emergence of strong uptrend.

This is the third Up Gap Breakout with previous ones at Rs 190.55-200 and Rs 138-143 which shows buying interest at various levels.

The stock will attract fresh buying if it closes above Rs 287 for two consecutive sessions. Supports lie at Rs 284-269-257-239-230 levels. The stock can be accumulated at these levels.

With a stoploss of Gap support at Rs 190-200 the stock should be bought for target of Rs 575.

Intermediate profit booking levels are Rs 340-415-530.

If there is a frenzy move above Rs 530 levels one should exit before previous down gap resistance of Rs 594-600 levels,” Gala said.