Buy Pantaloon Retail for target of Rs 389: IIFL

MUMBAI: IIFL is of the view that Pantaloon Retail is placed at long term support levels and the risk reward favors for the upside. It has advised to buy the stock for target of Rs 389.

“After hitting an interim peak of Rs 501, Pantaloon Retail stock has corrected nearly 34% and right now placed at long term support levels. With RSI trading in oversold terrain and displaying positive divergence on the short term charts, the risk reward favors for the upside.

Based on hourly chart, stock has given breakout from a ‘symmetrical triangle’ which is likely to pave for smart upside of 7-8%. From candlestick point of view, stock has been making back to back ‘long lower shadow’ which also attributes bargain buying at lower levels. We advise buying stock above Rs 371 with stop-loss of Rs 362 for target of Rs 389,” the report said.

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