Devang Shah, Technical Analyst at Angel Broking has recommended trading strategies on Tata Consultancy Services (TCS), NMDC and Bharti Airtel. He gave following rationale for technical strategies:
1.Tata Consultancy Services (TCS)
View-Bullish
Last Close-Rs.3492
''This IT heavyweight counter continuously moving in a 'higher top higher bottom' bullish price cycle in the daily chart. Now, the short-term trend still remains upward; indicating strength in this stock. Further, the 'RSI' on daily chart still is sloping in the northward direction, providing credence to the recent price action. Further, if we try to analyze 'Bolinger Bands', it clearly goes with our bullish stance on the counter. we expect this outperformance to continue. Thus, we recommend buying this stock at the current level for the target of Rs 3799 over the next 10-15 sessions the stop loss should be fixed at Rs 3320.''
2. NMDC
View-Bearish
Last Close-Rs. 115
''This metal counter is continuously trading in a 'lower top lower bottom' Bearish price cycle in daily chart. Prices are well below important short term and long term moving average which indicates overall weakness in the counter. Moreover, momentum stochastic oscillator on the daily chart is heading southwards well below the 20 mark. Further, if we try to analyze 'Bollinger Bands', it clearly goes with our bearish stance on the counter. Thus, we recommend selling this stock at current levels for a target of 103 over the next 10-15 sessions. The stop loss should be fixed at 122.''
3. Bharti Airtel
View-Bearish
Last Close-Rs. 367.50
''Telecom sector has been not performing well due to the price war, it clearly reflects in the stock price. The stock has been an underperformer since last few weeks which is clearly visible in the 'lower top lower bottom' formation on the daily chart. Further, if we try to analyze 'Bollinger Bands', it clearly goes with our bearish stance on the counter. In addition, prices are well below 50EMA, indicating short-term bearishness in the counter. Thus, we recommend selling this stock at current levels for a target of 329 over the next 10-15 sessions. The stop loss should be fixed at 389.''
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