Suggestion: Buy, Target price Rs. 232; Stop loss at Rs. 215
Last Price 220.10
Fig. 1 shows the price chart for JP Associates. The current prices are trapped between a pair of trend lines (blue in color). The lower channel of this trend has been tested from last 4 sessions, and thus the support is confirmed. If the prices continue to follow the current trend lines, price will further rise in the coming sessions. This has to be further confirmed with other graphs.
This move can be confirmed with the help of moving averages, as shown in Fig. 2. This figure contais simple moving averages with different durations, shown with different color codes. The moving average with shortest duration has risen above other moving averages. This means that the Bullish phase is about to start, which will be confirmed once the medium-term moving average crosses and rises above the long-term moving average.
Fig. 3 shows the ADX (Average Directional Index) for JP Associates. The current value is 19.95, which means the stock is currently in the trading phase.
Slow Stochastic oscillator for JP Associates is shown in fig. 4. As of now, the %K line is above the %D line. Once the lines reach the overbought area, then there are possiblities that the expected Bullish phase might come to an end.
Therefore, it is advised to the readers to buy the stock at the current levels with a target of Rs. 232. The stop loss is adviced at Rs. 215.