2 Stocks to Keep a Watch On - Raymond Limited and Engineers India Limited

Raymond Limited – Stock Broken Out of the Consolidation

Raymond has been trading in a range of 255 and 305 from the past six months. This consolidation forms the flag pattern which developed in the time of total 8 months. The stock has broken out of the flag pattern and started rising. Raymond gave a breakout by closing above 305. The volumes were also diminishing during the consolidation phase which adds to the pattern reliability. The flag pattern which developed suggest the up move in the stock till the levels of around 430. 

Today the stock of Raymond limited made a new 52-week high of 329. The volumes are increasing along with the increase in prices after the breakout confirming the uptrend and pattern. The share closed at 317.70 with marginal losses today and might go near its breakout point. The prices of Raymond are having support near 272 which can be used as stop loss to hold this stock and enjoy a big run up. 

One can buy Raymond in the range of 305-308 with stop losses of closing below 272 on daily basis and expecting targets of 430 in the coming 3 months.

Engineers India Limited – Time to Ride the Extended Wave 3

Engineers India is a PSU with majority (more than 70%) of its shareholding with Centre and State Governments. The stock of Engineers India has been in a big uptrend from quiet some time. The recent rally from the low of 142.50 is almost a 70% rise in prices. But the wave formations of the stocks still suggest more upside.

Talking about the wave formations, it formed Wave (i) from the low of 121.95 to the high of 189. Wave (ii) was corrective which took approximately 5 months to complete. The recent rally which we will mark as Wave (iii) started from the low of 142.50 has already extended the 161.8% of Wave (i) which is the nature of 3^rd Waves. The next price area which the stock might extend till 261.8% is near 299 levels.

The stock already rose so much and the trade sounds to be risky but the risk to reward ratio is in our favour and the setup looks interesting and that too in quick time. Buy positions can be created in this stock near the current levels of 236 with the stop losses below 220 and expected targets would be around 299.    

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