Buy KS Oils for target of Rs 57:IIFL

MUMBAI: IIFL has advised traders to buy KS Oils for target of Rs 57.

“In our view, KS Oils has completed its downfall and has created a immediate support around the levels of Rs 50-51. From the current level, the stock can only move towards one direction, i.e. upwards. The daily RSI has also given a positive divergence, indicating that price would start moving up.

On the daily chart, pattern of Double Bottom is also seen. It is a major reversal pattern that is formed after an extended downtrend. Yesterday’s recovery was accompanied by higher than average volumes.

We expect the stock to attempt the 50-DMA, currently placed at Rs 57. Based on the above evidences, we recommend traders to buy the stock above Rs 52.50 with stoploss of Rs 50.50 for a target of Rs 57,” the report said.

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