Few trading ideas by Sameet Chavan, Chief Analyst- Technical & Derivatives, Angel Broking:
Finally, after a consolidation of nearly three to four weeks, our markets
showed some encouraging movement as we saw the Nifty marching towards its record high of 10,137.85. In fact, couple of valiant attempts to traverse this hurdle was turned down. Eventually, the Nifty managed to close firmly a tad below the 10,100 mark. The kind of activity we are observing since last three days is quite obvious as traders seemed a bit unsure whether the market has that much strength to cross record highs or not. Hence, the next round of momentum in the upward direction is possible only after surpassing this hurdle. Until then we are likely to witness a similar kind of uncertainty in a range of 10,000-10,138 with slightly higher volatility. A sustainable move below the 10,000 mark would apply brakes on the recent optimism. At present, one needs to closely keep a track of these important levels on the index and meanwhile, keep focusing on individual stocks in order to obtain better trading opportunities. A prudent strategy would be to stay light on positions and should ideally be prepared with a proper exit strategy.
Last Close: Rs 506.90
The stock has been vacillating within the boundaries of two contracting trend lines since last three months. Last week, we saw a genuine attempt to traverse the upper range of around Rs 499 as the volume activity during this price development was quite encouraging. Further, if we look at the momentum oscillators reading, the ‘RSI-Smoothened’ on daily chart is continuing its upward trajectory by entering the overbought zone above the Rs 70. This we believe would provide the impetus for the up move. Hence, we recommend buying this stock at current levels for a target of Rs 530 over the next 14-21 sessions. The stop loss now should be fixed at Rs 493.
Last Close: Rs 2649
After a long consolidation, the stock prices have managed to traverse the upper end of around Rs 2,610 with a decent rise in volumes. Due to lack of follow-up buying, the stock remained in a range since last couple of days; but looking at the higher degree chart structure, we expect the stock to resume its uptrend. One can buy this stock for a target of Rs 2720 over the next 5-10 sessions. The stop loss should be fixed at Rs 2608.
Last Close: Rs 401.75
This stock has been a laggard since last few months. However, after forming a strong base around Rs 375 for nearly four weeks, the stock has shown some encouraging sign in the latter half of the week. A recent hurdle of Rs 395 was thrashed with sizable volumes; indicating strong buying interest in the counter. The way momentum oscillators are shaped up; we expect the stock to extend this up move in the near term. We recommend buying this stock for a target of Rs 420 over the next 5-10 sessions. The stop loss should be fixed at Rs 395.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.