Trading ideas by Bharat Gala of Ventura Sec: Buy Thermax, CCL Products

CCL Products

CMP: Rs 268

Target: Rs 375-425

Buy area: (261-254)-248-(244-240)

Stop loss: Rs 225

After CCL Products started its up move from 137 in March 2020, a series of higher bottoms followed, at 175 in May 2020 and 220 in July 2020. Then, the stock made a high of 294 in Aug 2020 and entered a sideway move in the range of 231 and 295 from Aug 2020 to April 2021. Recently, it has given a breakout and made a high of 273. The KST, Demand index and ADX indicators suggest the strong possibility of an uptrend in the coming days. The up-move supported by volumes suggests buying interest. The stock has now closed above its previous months high and has the strength to achieve a target of 375 to 425 in the coming days. If the stock corrects, it should be added at (261-254)-248-(244-240) levels. Observe a stop loss of 225 in this trade. CLICK HERE FOR THE CHART

Thermax

CMP: Rs 1,410

Target: Rs 1,800-2,000

Buy area: (1,385-1,337)-1,297-((1,250-1,235)

Stop loss: Rs 1,155

From 740 in November 2020, Thermax entered an uptrend, making several higher bottoms at 880-940-1140. Then, it made a high of 1465 in March 2021. In fact, it entered a sideway move in the range of 1270-1450 from February 2020 to April 2021.

Recently, the stock traded within the range of a big positive candle for a week and crossed its previous week high to make a high of 1405, supported by volumes. The KST & Demand index suggest the strong possibility of an uptrend in the coming days.

This super trend is in the positive mode since October 2020 and the stock has the strength to achieve a target of 1800-2000 in the coming days. If the stock corrects, it should be added at (1385-1337)-1297-(1250-1235) levels. Observes a stop loss of 1155 in this trade. CLICK HERE FOR THE CHART

Visaka Industries

CMP: Rs 552

Target: Rs 750-950

Buy area: (529-493)-463-(433-417)

Stop loss: Rs 390

On this weekly chart of Visaka Industries, the stock made a low of 95 in March 2020 from a high of 840 in Jan 2018. After falling for over two years, between 2018 and 2020, it entered a V shaped recovery and made a high of 534 in one year’s time (by February 2021). Recently the stock formed two sizeable weekly green candles and made a high of 589. It has given a weekly breakout above the trend line connecting 2018 and 2021.  Now the stock has given a weekly candle close above all moving averages and the Aroon Up/dwn, ADX and Demand index confirm the strength of the pattern breakouts. In fact, the super trend has been in Positive mode since June 2020. All this suggests that the stock has strength to achieve a target of 750-950 in coming days. If it corrects, it should be added at (529-493)-463-(433-417) levels. But do maintain a stop loss of 390 in this trade. CLICK HERE FOR THE CHART

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Disclaimer: Bharat Gala is President - Technical Research at Ventura Securities.

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