Buy Essel Propack for target of Rs 59:IIFL

MUMBAI: IIFL is of the view that Essel Propack has signaled breakout from Ascending Traingle pattern. The brokerarge expects target of Rs 59 in the stock.

“Essel Propack has signaled breakout from Ascending Traingle pattern after prices surpassed above Rs 50 levels with spurt in volumes. This move has brought to end long awaited consolidation and beginning of next leg of up-move.

From Elliot wave perspective such a move can be termed as end of wave 4 and beginning of wave 5. Based on conservative basis we expect such up-move to be sustainable and test levels of Rs 65 in the coming week.

Weekly RSI has also signaled a positive crossover indicating strong momentum and since oscillators are yet to enter overbought position it provides better risk reward ratio. Based on above technical observation we recommend buying stock in the range of Rs 51-52 with stop-loss of Rs 49 for target of Rs 59,” the report said.

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