Rajesh Bhosale, Technical Analyst at Angel Broking has recommended trading strategies on Rajesh Bhosale on how to trade in Tata Communications, Piramal Enterprises (PEL) and Jindal Steel & Power. He gave following rationale for technical strategies:
1. Tata Communications
View-Bearish
Last Close-Rs. 596.60
''After holding to the support levels of 600 for last more than three months, stock prices have closed below 600 confirming a multiple pattern bearish breakdown. On the daily chart, we are witnessing a range breakdown whereas on the higher timeframe weekly chart we are witnessing a major trend line breakdown. On the oscillator's front, momentum oscillator i.e. RSI has broken below 40 levels which acted as support for four times in last three months thus indicating a bearish range shift. In addition, prices are well below major moving averages i.e. 20DSMA, 50DSMA and 200DSMA indicating overall weakness in the counter. Thus, we recommend selling this stock at current levels for a target of Rs 563 over the next 5-10 sessions. The stop loss should be fixed at Rs 615.''
2. Piramal Enterprises (PEL)
View-Bullish
Last Close-Rs. 2545.85
''The stock has been a consolidation since last more than one year. At the current juncture, we are now witnessing early signs of prices breaking out of this consolidation. On the daily chart, prices have sharply bounced in last few sessions from the recent low of 2285 to current levels 2545. The said up move has resulted in a descending trend line bullish breakout which is supported with above-average volume. In addition, we are witnessing +DI crossing -DI from below indicating early signs of a trend getting developed on the bulls side. Looking at all the above scenario, a strong upside from the current levels cannot be ruled out. Thus, we recommend buying this stock at current levels for a target of Rs 2725 over the next 5-10 sessions. The stop loss should be fixed at Rs 2445.''
3. Jindal Steel & Power
View-Bearish
Last Close-Rs. 222.35
''Stock prices since for five month were trading in a 'Symmetrical Triangle' pattern where both the trend lines of the pattern proved to be a strong support and resistance zone in the past. On the daily chart, prices have broken below the lower range of the pattern confirming a bearish breakdown. The said breakdown is supported by above-average volume. In addition, we are witnessing a bearish crossover in moving averages where 20DSMA is cutting 89DEMA from above. Momentum RSI on the daily chart is heading southwards well below the 40 mark; indicating further weakness in the counter in the near term. Thus, we recommend selling this stock at current levels for a target of Rs 200 over the next 5-10 sessions. The stop loss should be fixed at Rs 234.''
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