Chart Check from Angel Broking for Tuesday, March 27: IVRCL, United Spirits

We have compiled technical recommendations from Shardul Kulkarni, Senior Technical Analyst, Angel Broking for 8-10 weeks.

1) IVRCL Ltd is a 'BUY' call with a target of Rs 86 and a stop loss of Rs 48.40

Justification: The stock has been consolidating in the range of Rs62.5 to Rs48 since last 4 - 5 Weeks. Yesterday, on the Daily chart we observed a breakout from a "Downward Sloping Trend Line" resistance level (drawn by joining high of July 8, 2011 and high of February 17, 2012) at Rs 60.15.

In addition, the daily momentum oscillator viz. the "RSI" and the "RSI - Smoothened" are positively poised. The stock is consistently trading above the "20-Week EMA" and "200-day SMA", which is a sign of strength. Thus, all the above technical evidences suggest, possibility of a "Bullish Flag" pattern breakout above ` 62.5 on the Weekly chart. Therefore, we advise buying the stock ONLY above Rs62.5 for a target of Rs86 in coming 8 - 10 weeks.

IVRCL Ltd. (NSE CASH) Daily Chart:

2) United Spirits is a 'BUY' call with a target of Rs 605 and a stop loss of Rs 536

Justification - On the hourly chart, the stock has a stiff resistance of "Downward Sloping Trend Line" at Rs559. However, the daily "RSI" momentum oscillator indicates strength in this stock. In addition, few other technical evidences viz., the "5 & 20 EMA" and the "RSI-Smoothened" oscillator in hourly chart are positively poised.

Combining above technical tools, the possibility of a breakout from this resistance cannot be ruled out. Thus, we advise buying this stock ONLY above ` 559 for a target of Rs605 in coming 1 - 2 weeks.

UNITED SPIRITS (NSE cash) Hourly Chart: