Devang Shah, Technical Analyst at Angel Broking has recommended trading strategies on Kotak Mahindra Bank, Escort and State Bank Of India (SBI). He gave following rationale for technical strategies:
1. Kotak Mahindra Bank
View-Bullish
''Kotak bank has been maintaining its uptrend by forming 'Rising peaks and Rising troughs' in all time frame charts. At current juncture, we are witnessing signs of bullish resumption with prices breaking above the recent congestion zone. As far as oscillator's reading is concerned, MACD continues to inch higher; indicating continuation of the up move. Further, if we try to analyze 'Bollinger Bands', it clearly goes with our bullish stance on the counter. Considering all above scenarios, a strong upside from current levels cannot be ruled out. Thus, we recommend buying this stock at current levels for a target of Rs 1274 over the next 10-15 sessions. The stop loss should be fixed at Rs 1134.''
2. Escort
View-Bullish
'This stock has been enjoying its multi-year 'Bull Run' before slipping into a consolidation mode. In addition, prices are well above 10DEMA, indicating short term bullishness in the counter. The stock is trading near all time high, which shows its outperformance in the recent market turbulence. Further, if we try to analyze 'Bolinger Bands', it clearly goes with our bullish stance on the counter. Considering all above scenarios, a strong upside from current levels cannot be ruled out. Thus, we recommend buying this stock at current levels for a target of Rs 1049 over the next 10-15 sessions. The stop loss should be fixed at Rs 912.''
3. State Bank Of India (SBI)
View-Bearish
The stock has been an underperformer since last few weeks which is clearly reflecting in the 'lower top lower bottom' formation on the daily chart. Moreover, momentum oscillator i.e. 'RSI' is showing negative divergence, indicating distribution at higher levels. In fact, if we meticulously observe the recent price action, every attempt to rebound is getting sold into. On the daily chart, prices are well below major moving averages i.e 50-200 SMA indicating overall weakness in counter. Thus, we recommend selling this stock at current levels for a target of 212 over the next 10-15 sessions. the stop loss should be fixed at Rs 246.''
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