Sizzling Stocks: Allahabad Bank (Rs 169.4)



Allahabad Bank skyrocketed 17 per cent in the previous week, following the company's announcement of strong September quarter results. The stock is rebounding from its significant long-term base zone between Rs 135 and Rs 145 for the second time in October. Moreover, we notice that the weekly relative strength index is displaying positive divergence supporting this trend reversal. It has formed a bullish engulfing candlestick pattern in the weekly chart which also denote trend reversal.

The stock is hovering well above its 21 and 50-day moving averages. However, the stock is currently testing its important long-term resistance at around Rs 170. Strong breakthrough of this level will take the stock upwards to its next key resistance at Rs 185 in the ensuing trading sessions. Key resistance above Rs 185 are Rs 200 and Rs 220. Failure to move above Rs 170 will pull the stock down to Rs 155-158 zone or down to Rs 145 in the medium-term.

Havells India (Rs 417.6)

Conclusively breaking through its significant long-term resistance at around Rs 370, the stock zoomed 15 per cent in the last week. The stock is trading well above its 50 and 200-day moving averages. With the recent surge, the stock is nearing its key long-term resistance band between Rs 430 and Rs 440.

As the stock has accelerated sharply and its daily relative strength index is reaching overbought levels, a near-term decline can not be ruled out in the upcoming trading sessions. In such a case the stock can decline to Rs 395, Rs 380 or Rs 370. Decisive penetration of the stock's long-term resistance band will lift the stock to Rs 460. Conversely, failure to hold above the key support level of Rs 370 will drag the stock lower to Rs 340 and Rs 310.

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