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Top technical calls from Sameet Chavan, Chief Analyst- Technical and Derivatives of Angel Broking:
RADICO KHAITAN – BUY
TARGET – Rs 159
Recently, this stock underwent a strong consolidation phase during which every attempt towards 138 – 140 was getting sold into. However, on Monday, we saw strong follow up buying interest post previous Friday’s sturdy closing; leading to a confirmation of ‘Inverse Head and Shoulder’ pattern on daily chart. This price activity was accompanied by higher than average daily volumes, which certainly is an encouraging sign. In addition, some of the key moving averages along with the technical indicators are still maintaining their upward trajectory. Hence, we advise traders to buy this stock at current levels and on declines at Rs 143 for a target of Rs 159 over the next 6- 8 sessions. The stop loss now should be fixed at Rs 139.
HAVELLS INDIA – BUY
STOP LOSS – Rs 465
TARGET – Rs 520
Since last couple of months, the stock has been consolidating in a range and has formed a ‘Symmetrical Triangle’ pattern on the daily chart. On Thursday, the stock prices finally managed to give a breakout from the pattern with decent volumes. The ‘RSI’ oscillator too, after a consolidation phase, has resumed the positive momentum. The price breakout, supported by the volumes and positive momentum oscillator is indicating that the stock has resumed its larger degree uptrend. Hence, we are expecting the stock to move higher in near term. Thus, we recommend buying this stock at current levels and on a correction up to Rs 486 for a target of Rs 520 over the next 14 – 21 sessions. The stop loss should be fixed at Rs 465.
TATA MOTORS DVR – SELL
STOP LOSS – Rs 267.55
TARGET – Rs 237
This stock has been a clear underperformer since September 2016 highs. During this period, our benchmark index rallied more than 20 percent and is trading around all time highs; whereas, this stock kept descending towards its 52-week low. This is a clear sign of weakness. On Thursday, we saw breakdown from a major near term support level of 258 on a closing basis. In addition, the ‘RSI-Smoothened’ has slipped below its recent lows, which we believe would provide an impetus for further correction. Thus, we recommend selling this stock at current levels and on a bounce up to Rs 258 for a target of Rs 237 over the next 5 – 10 sessions. The stop loss should be fixed at Rs 267.55.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.