Trading strategies for Bata India and Alembic Pharma by Mehul Kothari

BUY BATAINDIA NEAR Rs 1,400 | TARGET: Rs 1,560 | STOP LOSS: Rs 1,320 

BATAINDIA has been correcting from 1,950 without any meaningful bounce. At this point in time, it is hovering near a rising trend line support on the weekly scale. In addition, it is on a major support of Ichimoku system on the monthly scale. We expect a decent bounce in the stock from here on. Thus, we advise traders to go long in the stock near Rs 1,400 with a stop loss of Rs 1,320. 

BUY ALEMBIC PHARMA NEAR Rs 520 | TARGET: Rs 560 | STOP LOSS: Rs 500 

The stock is highly oversold in most of the time frames and has started changing trend in intraday charts. The stock has retraced exactly 88.6 per cent of the previous rally and the fall seems over stretched. We expect a bounce back in the stock. Thus, we advise traders to go long in the stock near Rs 520 with a stop loss of Rs 500. 

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Disclaimer: Mehul Kothari is AVP – Technical Research at Anand Rathi Shares & Stock Brokers. Views are personal