Buy Lanco Infra for target of Rs 78: IIFL

MUMBAI: IIFL is of the view that Lanco Infra has given a breakout from the downward sloping resistance line on the daily chart. It has recommended traders to buy the stock for target of Rs 78,” the report said.

“Lanco Infra has given a breakout from the downward sloping resistance line on the daily chart after it closed above its 20-DMA with sporadically high volumes on Wednesday. The stock has a strong support at its 100-DMA (Rs66), from where it has bounced back this week.

Weekly chart shows a breakout from a falling wedge pattern. Such back to back confirmation on short term and medium term chart supports our buying argument at current levels and provides better risk-reward ratio. Based on above technical analysis, we recommend traders to buy the stock above Rs 72 with a stop-loss of Rs 69 for a target of Rs 78,” the report said.

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