Chart Check from IIFL Private Wealth for Tuesday, March 06: BEML, Sun Pharma

We have compiled technical recommendations from Ashish Chaturmohta, Vice President – Derivatives & Technical Analyst of IIFL Private Wealth for 5-7 days.

1) BEML is a 'BUY' call with a target of Rs 695 and a stop loss of Rs 648

BEML after forming a strong base around 450 levels, the stock has witnessed strong buying interest and has closed at its 12 months highest levels. On its weekly charts the stock has given a crucial breakout above 620 levels and sustaining strong above it with volume participation, indicating strength in the stock.

Sustaining at current levels the stock can move towards 700-715 levels and on downside the stock finds important support around 645 levels. The stock is trading above its short term and long term moving averages suggesting positive bias.

2) Sun Pharma is a 'BUY' call with a target of Rs 597 and a stop loss of Rs 560

SUNPHARMA on its daily charts has formed a rounding bottom formation prima facie which is a bullish pattern formation and is trading close to its all time high levels indicating strength in the stock. Also on its weekly chart the stock has given an important breakout of its rising trendline.

Sustaining at current levels, stock can see further buying interest and can be heading towards 600 – 610 levels. However, on downside the stock finds immediate support around 560 levels. The MACD indicator on its daily charts is showing a positive crossover to its signal line, suggesting positive bias.