Trading strategies for Bandhan Bank & Ambuja Cement by Ajit Mishra

The stock of Bandhan Bank has been underperforming the banking index and is still struggling below the resistance zone of moving averages

Ambuja Cements Limited

Recommendation: Sell December Futures

Last Close: 379.05

Initiation range: 381-383

Target: 365

Stop loss: 390

Mostly cement counters have been witnessing profit taking and AMBUJACEM is trading in sync with the others. After a sharp decline, it witnessed a marginal rebound of late but failed to surpass the resistance zone around 385 levels. Indications are in the favour of the resumption of decline in the near future. We thus recommend creating fresh shorts in the mentioned zone.

Biocon Limited

Recommendation: Buy

Last Close: 378.15

Initiation range: 374-377

Target: 398

Stop loss: 365

BIOCON has witnessed a decent correction in the last one year, after making a record high at 487.75 in December 2020. Recently, it has surpassed the resistance zone of long term moving average (200 EMA) on the daily chart and also breached the declining trend as well. The chart pattern now indicates gradual recovery from hereon. We, thus, advise accumulating fresh longs in the given range.

Bandhan Bank Limited

Recommendation: Sell December Futures

Last Close: 279.95

Initiation range: 285-288

Target: 270

Stop loss: 298

BANDHNABNK has been underperforming the banking index and is still struggling below the resistance zone of moving averages ribbon on multiple time frames. It has plunged sharply after the failed attempt to surpass the resistance zone around 310 levels recently and formed a fresh shorting pivot. We, thus, advise creating fresh shorts within the mentioned zone.

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Note: All prices are in Rs

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

http://www.religareonline.com/disclaimer