Ajit Mishra suggests going short on Bandhan Bank, Escorts; here's why

BANDHAN BANK 

Recommendation: Sell July Futures
 

Last Close: Rs 301.60
 

Initiation range: Rs 303-305
 

Target: Rs 285
 

Stop loss: Rs 312

We’re seeing profit-taking across the board in the recent market fall and the banking pack is no different. Among the stocks, Bandhan Bank has been trading in a steady downtrend and is facing selling pressure on every rise. It has formed a short pivot after its failed attempt to sustain above the moving averages ribbon on the daily chart. We thus recommend creating fresh shorts in the given range.

ESCORTS 

Recommendation: Sell July Futures
 

Last Close: Rs 1169.30
 

Initiation range: Rs 1175-1185
 

Target: Rs 1085
 

Stop loss: Rs 1235

Escorts has been trading with a corrective bias after retesting its previous record high around Rs 1468 levels in February. And, it has witnessed a fresh breakdown from a congestion range of July 20. The stock is likely to see a sharp decline in the near future. Traders shouldn’t miss this opportunity and go short in the mentioned zone. 

KANSAI NEROLAC PAINTS

Recommendation: Buy
 

Last Close: Rs 618.20
 

Initiation range: Rs 615-620
 

Target: Rs 670
 

Stop loss: Rs 590

Paints stocks are showing tremendous resilience in the recent corrective phase and Kansai Nerolac is also trading firm. It has formed a strong base around Rs 590 and looks set for a rally. The recent uptick in the volumes is further adding to the confirmation. We thus advise accumulating in the given range.

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Disclaimer: Ajit Mishra is VP - Research at Religare Broking.

http://www.religareonline.com/disclaimer