>TOP PICKS (RELIGARE SECURITIES)

■ Our Top five picks with a time frame of around three months are :

• Suzlon Energy – Possible target of around Rs.120 or Rs.145. Support at Rs.50.

• DCB – Possible target of around Rs.55-Rs.60. Support at Rs.21.

• Bombay Dyeing – Possible target at Rs.345-Rs.400. Support at Rs.165.

• IB Real Estate – Support at Rs.115. Double bottom reversal target at around Rs.260. Double bottom reversal gets completed when the scrip trades above Rs.172.

• ABAN –Support at Rs.390. Last swing low at Rs.221. Technical target at Rs.1000-Rs.1100.

■ We have scanned the graphs of a number of companies to identify five tradable ideas with a time frame of around three months.



■ We have used the classic or traditional system of technical analysis on the weekly chart to identify these scrips.



■ On the average front, we have used three simple moving averages, the 5 week, 13 week and 30 week simple moving averages. As per our system when the 13 week moves above the 30 week average, the medium-term trend reverses direction.



■ Our support zones are identified with the help of these moving averages and the last swing lows posted.



■ Double bottom reversals were seen in a few scrips and the measuring implications were taken into account.



■ The target analysis was largely based on pattern implications, retracement of the last leg of the fall and retracement levels of the earlier fall.



■ Three or more segments of the fall were also taken into account as W.D.Gann was a great believer of this.



■ Rounding bottoms were also noticed and taken into consideration.



■ Thus, over various parameters that have traditionally stood the test of time have been taken into account to identify these scrips.

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