Stock recommendations from Angel Broking

Siddarth Bhamre of Angel Broking recommends ICICI Bank with a price target of Rs 265

ICICI BANK: SELL
TARGET: Rs 265
STOP LOSS: Rs 293
                                                                   

Justification – Last month, the stock had given ‘Head and Shoulder’ pattern breakdown in the weekly chart. On Friday, the stock started correcting after retesting the neckline of the mentioned pattern, which coincides with the 50% retracement level of the entire fall from Rs 319.80 to Rs 247.70 in the daily chart.  Looking at the current chart structure, we believe that it’s a sell on rise counter and thus every rise towards Rs 283 levels is a shorting opportunity for a target of Rs 265. The stop loss for this trade set up can be kept at Rs 293.

ONGC: BUY

TARGET: Rs 234
STOPLOSS: Rs 225

Justification – The stock is showing strength from its long term support area of Rs 215 – 220 zone. Last week, the stock had made an ‘Inside Bar’ in the weekly chart and prices have breached the resistance of Rs 232 – 233 levels on Friday. Momentum oscillators are also showing strength and thus indicating a pullback rally in the counter. Thus, we advise traders to buy this stock on declines to Rs 234 for a target of Rs 255 in upcoming sessions. The stop loss for this trade set up can be kept at Rs 225.

YES BANK: SELL
TARGET: NA
STOP LOSS: NA

After a steep fall of more than 20% from the August high of Rs 846.45, the stock prices managed to give a smart recovery after posting a low of Rs 595. Due to sharp fall, the weekly chart structure became weak and thus, a recent bounce can be construed as a relief rally or a pull back. The stock has now retraced its down move by 88.6%, which coincides with the daily ’89 EMA’ placed at Rs 770. In addition, Friday’s candle can be termed as a ‘Long Legged Doji’; indicating exhaustion of the recent bounce.

Disclaimer: We are suggesting all these stocks to our clients but there is no personal holding

Siddarth Bhamre is head of equity derivatives and technicals at Angel Broking