Rajesh Bhosale, Technical Analyst at Angel Broking has recommended trading strategies on Rajesh Bhosale on how to trade in Muthoot Finance, Ujjivan Financial Services and BEML. He gave following rationale for technical strategies:
1. Muthoot Finance
View-Bearish
Last Close-Rs. 451.35
''On the daily chart, stock prices have given a bearish reversal pattern breakdown known as 'Double Top'. The said pattern also marks a 'Lower Top Lower Bottom' price formation. In addition, we are witnessing a bearish crossover with 20DSMA crossing 50DSMA from above. Moreover, RSI has breached the 40 level which was acting as support since last four months. Thus, we recommend selling this stock at current levels for a target of Rs 400 over the next 5-10 sessions. The stop loss should be fixed at Rs 475.''
2. Ujjivan Financial Services
View-Bullish
Last Close-Rs. 388.60
''The stock is in uptrend moving in a Higher Top Higher Bottom price formation. Technically, stock prices have given a multiple pattern breakout by closing above 385 levels. On the daily chart, prices have confirmed a 'Cup n Handle bullish breakout whereas on the higher time frame weekly chart prices have confirmed 'Descending Triangle' breakout. In addition, Volume analysis indicates, above average-volume during up move and low volume during corrective moves which suggests accumulation in the stock. Thus, we recommend buying this stock at current levels for a target of Rs 426 over the next 5-10 sessions. The stop loss should be fixed at Rs 370.''
3. BEML
View-Bearish
Last Close-Rs. 1662.85
''The stock has broken below the support levels of advancing line which acted as support for four times in last two months. The said breakdown is witnessed with above-average volume. In addition, we are witnessing price close below 89DEMA which is a long-term support. Moreover, momentum oscillator i.e. RSI heading southwards well below the 40 mark; indicates further weakness in the near term. Thus, we recommend selling this stock at current levels for a target of Rs 1525 over the next 5-10 sessions. The stop loss should be fixed at Rs 1730.''
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