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Top technical calls from Sameet Chavan, Chief Analyst- Technical and Derivatives of Angel Broking:
Chennai Petroleum Corporation
Last Close – Rs. 398.75
This stock has already given stellar returns in last couple of years. In this course of action, the stock prices reached its 2007 highs of 400, which certainly is an achievement. Recently, we witnessed some consolidation in the counter. However, if we meticulously observe the volume activity, we can clearly see that the recent up move from 350 is backed by much higher volumes. This is an indication that the stock is likely to breakout from its multi-year highs quite soon. Hence, we recommend buying this stock at current levels for a target of Rs.426 over the next 14 – 21 sessions. The stop loss now should be fixed at Rs.384.
View – Bearish
Last Close – Rs. 153.10
Due to last week’s fall, the stock prices went on to breach its ‘200-SMA’ support level of 152. As a result, a ‘Lower Top Lower Bottom’ structure on the daily chart has been formed, which is a negative sign for short term. The ‘RSI’ oscillator too has given a breakdown from its long term support. On Friday, the stock managed to give a decent pullback move, which should ideally be used as a selling opportunity. Thus, we recommend selling this stock at current levels for a target of Rs.140 over the next 5 – 10 sessions. The stop loss should be fixed at Rs.159.
View – Bearish
Last Close – Rs. 450.35
This stock has given stellar returns over the past 7 – 8 months and has been one of the outperforming stocks within the space. Recently, the stock prices confirmed a breakdown from the ‘Rising Wedge’ pattern around 440, which was followed by a sharp correction towards the 400 mark. However, in last 4 – 5 sessions, the stock has rebounded vertically and retested the breakdown point. Now, we believe that this breakdown point would act as a strong resistance and going forward, looking at the ‘RSI-Smoothened’ placement, the stock may again start to correct. Thus, we recommend selling this stock at current levels for a target of Rs.418 over the next 5 – 10 sessions. The stop loss should be fixed at Rs.464.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.