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Trading calls by Jay Anand Thakkar, CMT -Assistant Vice President - Equity Research, Anand Rathi Shares and Stock Brokers

NIFTY: BUY | TGT: 12,150 | SL: 12,000

The Nifty closed in the negative territory in the last trading session. However, the fall on the hourly charts is a three-wave fall, hence the probability of a bounce back from the current levels is quite high. The index has retraced 23.6 per cent of its previous three days rise; hence there is a possibility of some more correction till 38.2% levels i.e. till 12044, so if it dips till those levels it will be a buying opportunity for the target of 12150 with a stop loss of 12000.

TCS: BUY | TGT: Rs 2,210 | SL: Rs 2,070

The stock seems to have completed the wave E of the ascending triangular pattern which is a bullish sign in the short term. It has also provided a breakout from the downtrend line resistance which is another sign of a trend reversal. It has violated the lower tops and lower bottoms formations which is further more sign of a reversal. The daily as well as weekly momentum indicator MACD is well in the buy mode with a positive divergence.

REPCO HOME: BUY | TGT: Rs 426 | SL: Rs 300

The stock has provided a breakout from the base triangular pattern with a buy crossover in its momentum indicator with a positive divergence. The stock has completed a three wave falling structure on the quarterly charts, hence a minimum of 23.6 per cent retracement of the entire fall can’t be ruled out.

WIPRO:  BUY | TGT: Rs 264 | SL: Rs 232

The stock has formed a double bottom pattern on the daily charts. The stock has started to form higher tops and higher bottoms which is a bullish sign in the short term. The move prior to this breakout was also an impulsive move, hence with this impulse formation the stock is likely to inch towards Rs 264, so one can buy this with a stop loss of Rs 232.

Disclaimer: Author may or may not have positions in the above mentioned stocks