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BUY HERO MOTO | TARGET: Rs 3,050 | STOP LOSS: Rs 2,740
The recent correction in the market dragged the stock of Hero MotoCorp from the high of Rs 3,600 towards Rs 2,800, a nearly 20 per cent erosion from the top. Post this fall, the stock found support at the placement of Ichimoku Cloud on the weekly scale and that could be a demand zone. Also, we are witnessing a Bullish Hammer candlestick pattern on the weekly chart which indicates the possibility of strong reversal. Hence, traders are advised to buy the stock in the range of Rs 2,860-2,840 with a stop loss of Rs 2,740 for the upside potential target of Rs 3,050 in 3-5 weeks.
BUY KOTAK BANK | TARGET: Rs 1,950 | STOP LOSS: Rs 1,650
Off late, the private banks have underperformed but they are showing signs of base formation. If we look at the Nifty Bank index, then we can witness a Golden crossover of 50 SMA and 200 SMA on the weekly time frame which suggests a strong upside in the banking index. Now Kotak Bank is one of the heavyweights in this index. The correction from the top has brought the stock near decent support and the risk-reward ratio to long is very favourable. Thus, traders are advised to buy the stock in the range of Rs 1,760-1,740 with a stop loss of Rs 1,650 for the upside potential target of Rs 1,950 in 3-5 weeks.
BUY WELSPUN CORP | TARGET: Rs 160 | STOP LOSS: Rs 133
Recently, there was a range breakout in Welspun Corp near Rs 140 levels and the theoretical target of the breakout was above Rs 170. After some upside, the stock underwent mild profit booking and is now again hovering near the breakout zone. On the weekly scale, the stock has found support at the Ichimoku Flat line which generally acts as a strong demand zone. Traders are advised to buy the stock near Rs 143 with a stop loss of Rs 133 for the upside potential target of Rs 160 in 1-3 weeks.
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The recent correction in the market dragged the stock of Hero MotoCorp from the high of Rs 3,600 towards Rs 2,800, a nearly 20 per cent erosion from the top. Post this fall, the stock found support at the placement of Ichimoku Cloud on the weekly scale and that could be a demand zone. Also, we are witnessing a Bullish Hammer candlestick pattern on the weekly chart which indicates the possibility of strong reversal. Hence, traders are advised to buy the stock in the range of Rs 2,860-2,840 with a stop loss of Rs 2,740 for the upside potential target of Rs 3,050 in 3-5 weeks.
BUY KOTAK BANK | TARGET: Rs 1,950 | STOP LOSS: Rs 1,650
Off late, the private banks have underperformed but they are showing signs of base formation. If we look at the Nifty Bank index, then we can witness a Golden crossover of 50 SMA and 200 SMA on the weekly time frame which suggests a strong upside in the banking index. Now Kotak Bank is one of the heavyweights in this index. The correction from the top has brought the stock near decent support and the risk-reward ratio to long is very favourable. Thus, traders are advised to buy the stock in the range of Rs 1,760-1,740 with a stop loss of Rs 1,650 for the upside potential target of Rs 1,950 in 3-5 weeks.
BUY WELSPUN CORP | TARGET: Rs 160 | STOP LOSS: Rs 133
Recently, there was a range breakout in Welspun Corp near Rs 140 levels and the theoretical target of the breakout was above Rs 170. After some upside, the stock underwent mild profit booking and is now again hovering near the breakout zone. On the weekly scale, the stock has found support at the Ichimoku Flat line which generally acts as a strong demand zone. Traders are advised to buy the stock near Rs 143 with a stop loss of Rs 133 for the upside potential target of Rs 160 in 1-3 weeks.
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Disclaimer: Mehul Kothari is AVP – Technical Research at Anand Rathi Shares & Stock Brokers. Views are personal.
