Domestic equities markets ended lower on F&O expiry day on Thursday on account of fag-end selling which dragged Sensex down by 224 points to 27835.91. The NSE Nifty 50 index also closed down by 58.10 points to 8592.20. In the 30-share index, GAIL, ITC, Axis Bank and Dr Reddy’s Labs gained 2.04 per cent, 1.24 per cent, 0.47 per cent and 0.34 per cent, respectively. On the other hand, Adani Ports, Wipro, Tata Steel and Infosys slipped by 3.02 per cent, 2.84 per cent, 2.04 per cent and 1.99 per cent, respectively. Meanwhile Sameet Chavan, equity technical analyst, Angel Broking gave his technical calls on NMDC, Titan, Jain Irrigaion, NCC and IPCA Labs with ‘Buy’ rating for the next 3-4 trading session.
Last Close: Rs 107.70
Justification – After undergoing a lot of pain in the recent years, this stock finally managed to form a low around Rs 66.45 in the month of February 2016. Since then, we have witnessed a decent recovery in the stock and has now confirmed a first sign of strength, which is the ‘Higher Top Higher Bottom’ formation on the weekly chart. In addition, the ‘RSI-Smoothened’ oscillator has surpassed the 70 mark and is now moving northwards, which we believe would provide an impetus for the next upward leg of the rally. The volume activity too has picked up in last several weeks. Combining these few observations, traders are advised to buy the stock at current levels and on a correction up to Rs 105 for a target of Rs 121. The stop loss for the trade set-up can be kept at Rs 101.50.
Last close: Rs 403.70
Justification – The stock is moving in an uptrend by maintaining ‘Higher Highs Higher Lows’ on weekly chart. From last few sessions, the stock is undergoing a corrective phase and in the course of action, has retraced its previous up move (from Rs 351.70 to Rs 435) by 50 per cent. The stock is currently trading around the lower end of the ‘Rising Channel’ on daily chart, which coincides with the mentioned retracement level and ‘Super Trend’ indicator. The ‘RSI’ oscillator is in process of rebounding from its ‘Trend Line’ support, indicating strength in the counter. Considering above technical evidences, we are expecting a resumption of the larger degree uptrend. Hence, traders are advised to buy the stock at current levels and on a correction up to Rs 398 for a target of Rs 432. The stop loss for the trade set-up can be kept at Rs 389.50.
Last close: Rs 83.15
Justification – In the recent past, the stock has formed a ‘Higher Top Higher Bottom’ on daily charts. During last week, prices confirmed a breakout from the resistance zone of Rs 80 – Rs 78 on a closing basis. The breakout was supported with good volumes; providing credence to recent price action. The ‘RSI Smoothened’ oscillator on weekly chart is surpassing the Rs 70 mark, which we believe would provide an impetus to the next upward leg of the rally. Combining above mentioned observations, traders are advised to buy the stock at current levels and on a correction up to Rs 81 for a target of Rs 94. The stop loss for the trade set-up can be kept at Rs.75.
Last Close: Rs 85.85
Justification – After a long consolidation of nearly twelve months, this stock finally managed to surpass its ‘Multiple Resistance Zone’ of Rs 83 – Rs 82 on a weekly closing basis. Due to lack of follow up buying, the stock prices remained in a narrow range with low volumes for last 4 – 5 days. However, the overall volume activity seen on a breakout day was quite encouraging and thus, we are expecting this stock to resume its upward momentum quite soon. In addition, one of the notable observations for this optimistic view is the placement of ‘RSI-Smoothened’ on weekly chart, which has just surpassed the 70 mark. Hence, we advise traders to buy the stock at current levels and on a correction up to Rs 84 for a target of Rs 96. The stop loss for the trade set-up can be kept at Rs 80.
Last Close: Rs 543.75
Justification – We have been maintaining our positive stance on this stock ever since it confirmed a breakout from the stiff hurdle of Rs 500 with substantial rise in volumes on July 29, 2016. This was followed by a long consolidation of nearly three weeks. However, the stock managed to maintain its position successfully above the daily ’89-EMA’, which converged around the breakout point of Rs 500. Now, during yesterday’s session, we witnessed yet another price-volume breakout on daily chart, confirming resumption of an upward trend in the near term. Going by this hypothesis, we advise traders to buy the stock at current levels and on a correction up to Rs 538 for a target of Rs 585. The stop loss for the trade set-up can be kept at Rs 520.