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Here are trading strategies for Delta Corp, Jindal Steel and Coal India from Angel Broking in trade today:
DELTA CORP: BUY
Target: Rs 90
Stop Loss: Rs 74
In last four trading sessions stock has seen three days of big upside move with heavy volumes and one substantial day with relatively low volumes. If we plot a trend line joining highs of 15th April and 20th July of this year, we observe that stock is still below this trend line but recent price and volume action suggest very high probability of stock breaching and giving a run-away break out. Also it has again closed above 89 EMA which adds to the probability of momentum to continue.
JINDAL STEEL: BUY
Target: Rs 81
Stop Loss: Rs 61
This stock has been one of the worst performing counters but in last 8 sessions despite market correcting significantly, stock has been in a range and high volume action. Correction from Feb 2015 has seen stock moving from 200+ levels to sub 70 levels without any meaningful bounce back. Even small amount of retracement in this underlying can take prices substantially higher from current levels in percentage terms. Go long with target of 81 and stop loss of 61.
COAL INDIA: BUY
Target: Rs 370
Stop Loss: Rs 336
Stock has corrected more than 100 points very sharply and went into oversold zone. Recent low which is around 335 coincides with lows made in mid of last year. It’s a strong support for the counter. Also on daily candlestick charts it has made ‘morning star’ pattern which has bullish implications. Positive crossovers in RSI and stochastics from oversold zone are adding strength to the conviction level. Go long with target of 370 and stop loss of 336.
Siddharth Bhamre is Head-Derivatives at Angel Broking
