Rajesh Bhosale, Technical Analyst at Angel Broking has recommended trading strategies on Rajesh Bhosale on how to trade in Tata Motors-DVR, Syndicate Bank and LIC Housing Finance. He gave following rationale for technical strategies:
1. Tata Motors-DVR
View-Bullish
Last Close-Rs. 246.10
''On the daily chart, stock prices have given a bullish reversal pattern breakout known as 'CUP N HANDLE'. The said formation also marks higher top higher bottom bullish price cycle which is witnessed with above average volume. In addition, we are witnessing price close above 89EMA which were acting as strong resistance since last three months. Looking at all the above scenario, we sense a strong up move in the counter in the near term. Thus, we recommend buying this stock at current levels for a target of Rs 261 over the next 5-10 sessions. The stop loss should be fixed at Rs 238.''
2. Syndicate Bank
View-Bullish
Last Close-Rs. 68.25
''The stock has undergone some strong correction in past few months. Last week, we witnessed a smart recovery after prices tested its support zone around 62 levels. On the daily chart, we are now witnessing a breakout from a descending trend line which can be taken as the first sign of bullish reversal. The said breakout is witnessed with a bullish candle and positive placement of momentum oscillator i.e. RSI. Thus, we recommend buying this stock at current levels for a target of Rs 75 over the next 5-10 sessions. The stop loss should be fixed at Rs 64.55.''
3. LIC Housing Finance
View-Bullish
Last Close-Rs. 670.10
''After a recent sharp rally from the levels of 604 to 671 stock prices went into correction phase. The said correction seems to be over with prices closing above previous high confirming a bullish 'FLAG' pattern. Prices are well above 20-50-89 DSMA which indicates overall bullishness in the counter. In addition, MACD has entered positive zone suggesting fresh leg of upside in near term. Thus, we recommend buying this stock at current levels for a target of Rs 698 over the next 5-10 sessions. The stop loss should be fixed at Rs 658.''
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