Three buy calls from SMC Global for today

Here are a few trading ideas from Mudit Goyal of SMC Global Securities

Nifty

Last close:  8477

Nifty was consolidating in the range of 7540-8050 levels since past few weeks and has formed the inverted head and shoulder pattern on daily charts, which indicates bullishness in the index. On Monday, Nifty gave the breakout of same and also managed above the psychological level of 8100. Beside this, Nifty has also surpassed the 50% of Fibonacci retracement level of recent down swing from 8620 to 7540 levels, also managed to trade above the same. Today, it faced hurdle around 8200 level, which is the 200EMA on daily charts, but bias remains positive. In a nutshell, every dip should be considered as buying opportunity for the near term. Therefore, one can buy in the range of 8100-8080 levels for the upside target of 8200-8250 levels in near term.

 

ARVIND: (LONG)

Last close: Rs 286.45

Target: Rs 293-295

As we can see on the chart that stock is forming an “Inverted Head and Shoulder” pattern on daily chart, which is considered to be bullish. As of now, we don’t have the neckline breakout of pattern but its consolidation from past few days indicates that there will be a strong spurt for near term. So, one can buy in the range of Rs 283-284 levels for the upside target of Rs 293-295 levels with stop loss below Rs 278.

 

ASIAN PAINTS: (LONG)

Last close: Rs 874.15

Target: Rs 892-900

After completing the double bottom pattern around 780 levels, stock has started moving higher. Currently, it is likely to form the “W” pattern on daily charts, which indicates decent buying from current levels. So, one can buy in the range of Rs 868-870 levels for the upside target of Rs 892-900 levels with stop loss below Rs 858.

 

CROMPTON GREAVES: (LONG)

Last close: Rs 179.80

Target: Rs 185-187

Short term and medium term bias remains positive for the stock. It was consolidating in the range of 165-185 levels from three months with positive bias. Currently, it is likely to give the breakout of downward sloping resistance line; any breakout can add further buying from current levels. One can buy in the range of Rs 177-178 levels for the upside target of Rs 185-187 levels with stop loss below Rs 174.

Disclaimer: The above recommendations are based on technical Analysis, I don’t have any personal holding in the discussed stocks. As a stock broker, proprietary and clients may have exposure.

Mudit Goyal is a technical analyst with SMC Global Securities