 "Chart check: Trading strategies for ITC and Parag Milk")
Nifty Outlook:
The index seems to have taken a breather ahead of the F&O expiry day. Though on the pattern front there was a narrow ranged formation very close to a ‘Spinning’ top formation exhibiting indecisiveness. The run just gets better as the Nifty comfortably closed above 11,053 for yet another day. This opens the trajectory towards the 'Channel Pattern' target of 11,332 to 11,430.
Momentum indicator ADX 9 has moved above its JULY 2017 high and indicates momentum should remain intact. Traders should maintain a trail stop strategy to remain with the ongoing surge until a firm reversal is not witnessed on the immediate time scale. A close below 10,970 level would distort the momentum but not the trend & hence serves as a trail stop for momentum longs.
Momentum indicator ADX 9 has moved above its JULY 2017 high and indicates momentum should remain intact. Traders should maintain a trail stop strategy to remain with the ongoing surge until a firm reversal is not witnessed on the immediate time scale. A close below 10,970 level would distort the momentum but not the trend & hence serves as a trail stop for momentum longs.
Stock: ITC
Reco.: Buy
CMP : 281.45
Lately ITC has been trading comfortably above its 200 DEMA while its recent volume pattern indicates accumulation. The recent breach from the ‘V’ formation indicates a price target upto 302 & hence traders could consider fresh longs with a stop below 274.
Stock: Parag Milk
Reco.: Buy
CMP : 295
On the long term scale the stocks seems to be in the process of completing the Rounding Bottom formation which is accredited as an accumulation formation. The stock has maintained its bullish structure since last 8 months & the recent corrective wave seems terminated near 267 as the occurrence of a ‘Bullish Harami’ confirmed the same. We expect the stock to scale above its life high of 357 as indicated by the long term pattern. The recent wave structure indicates a move towards 366 & hence we recommend fresh longs with a stop below 274.
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Note: All stock prices in Rs
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.
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