Sameet Chavan, technical analyst, Angel Broking gave views on the following stocks:
1. Cairn India
View: Bullish
Last Close: Rs 270.70
The stock has witnessed a massive correction over the past few weeks. In the process, the stock prices depreciated by more than 20% in such a short span. However, due to sharp fall in the recent past, the momentum oscillators have now entered an extreme oversold territory. Further, we are observing a 'Multiple Support Zone' around 255-252 levels. On Monday, we witnessed a breakout from the 'Downward Sloping Channel' at 272. However, due to lack of follow up buying, the stock prices immediately gave a pull back towards the breakout point. Considering the positive placement of the momentum oscillators, we advise traders to buy this stock from current level to a decline up to Rs 266 for a target of Rs.286 in coming 2-3 weeks. The stop loss for this trade set up can be kept at Rs 258.
Shares of the Cairn India declined Rs 3.9, or 1.42%, to settle at Rs 270.50. The total volume of shares traded was 152,368 at the BSE (Tuesday).
2. Bajaj Auto
View: Bearish
Last Close: Rs 2,644
This stock has been consolidating in a narrow range since last few trading session. The consolidation seen is near the resistance area of 2,698 which is 100% move of the previous alternate wave. On hourly charts, this consolidation has formed a rising wedge pattern from which the prices have given breakdown in today's trading session. Also the RSI on daily charts, as shown above, has given negative crossover from the 70 levels which has acted as resistance in past. Although the stock is in a broader uptrend, we expect the stock to retrace its last leg of up move and thus a corrective action should be seen in prices in near term. Hence, with a trading perspective, we advise traders to sell this stock from current level to a bounce up to Rs 2,650 for a target of Rs 2,525 in coming 1-2 weeks. The stop loss for this trade set up can be kept at Rs 2,680.
Shares of the Bajaj Auto declined Rs 29.5, or 1.1%, to settle at Rs 2,645.00. The total volume of shares traded was 12,922 at the BSE (Tuesday).
3. Tata Motors
View: Bearish
Last Close: Rs 521.85
After a consolidation of nearly 3-4 weeks, the stock has finally come out of its congestion zone of Rs 550 to Rs 525. This price action resulted in a breakdown from the ‘Diamond’ pattern on the hourly chart. The said pattern has a bearish implication when gets violated on the downside. In addition, the negative placement of the daily 'RSI-Smoothened' momentum oscillator is indicating weakness in the near term. Hence, we advise traders to sell this stock from current level to a bounce up to Rs 522 for a target of Rs 491 in coming 1-2 weeks. The stop loss for this trade set up can be kept at Rs 534.
Shares of the Tata Motors declined Rs 5.85, or 1.11%, to settle at Rs 520.75. The total volume of shares traded was 495,541 at the BSE (Tuesday).
Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.
