Sameet Chavan, technical analyst, Angel Broking provided views on three stocks. The same is as follows:
1. Biocon
"Looking at the weekly chart, it is clearly seen that after a decent correction, stock cemented its position around the daily ’89 EMA’ level of Rs. 420. This level coincides with the 50% Fibonacci retracement of the recent up move (Rs. 323.45 to Rs. 497.40) and hence can be considered as a strong support zone. On the daily chart, we are now witnessing a breakout from the ‘Descending Triangle’ pattern along with the substantial increase in daily volumes. Hence, considering positive placement of momentum oscillators, we expect the stock to rally towards Rs. 490 in coming 4 - 6 weeks. Traders can initiate long positions in the range of Rs. 453 - Rs. 443 by maintaining a strict stop loss of Rs. 425."
Shares of the company declined Rs 0.5, or 0.11%, to trade at Rs 451.05. The total volume of shares traded was 81,851 at the BSE (12.14 p.m., Wednesday)
2. Axis Bank
"The stock has witnessed a significant upside rally in last 8 - 10 weeks and has now reached its all time high of Rs. 1,532. During Thursday’s session, we observed that the stock faced a strong resistance near the 161% Fibonacci retracement level of the fall from Rs. 1,478.90 (the hourly swing high) to Rs. 1,410.10 (the hourly swing low). Moreover, the price action in hourly chart resulted in a formation of a bearish ‘Wolf Wave’ pattern. The said pattern requires 5 points and gets activated after giving a reversal signal at 5th point. The stock facing a resistance near the 161% Fibonacci retracement level fulfils the condition of 5th point. This pattern got confirmed once it broke Thursday’s low of Rs. 1,475.75. Looking at the negative placement of hourly ‘RSI-Smoothened’ momentum oscillator, we expect the stock to correct further in coming 4 - 6 trading sessions. We advise traders to sell this counter in a range of Rs. 1,450 to Rs. 1,470 for a target of Rs. 1,402. The stop loss for this trade set up can be maintained at Rs. 1,490.55."
Shares of the bank gained Rs 6.9, or 0.48%, to trade at Rs 1,452.65. The total volume of shares traded was 44,433 at the BSE (12.16 p.m., Wednesday)
3. JSW Steel
"The stock has witnessed a vertical rally from its recent low of Rs. 834.25 (low on Feb. 14, 2014). Hence, considering the extreme overbought position of daily momentum oscillators, the near term correction was due in the stock. Further, last weekly candle resembles a bearish ‘Long Legged Doji’ Japanese candlestick pattern, which got confirmed during yesterday’s session as the stock closed convincingly below its low of Rs. 1,048.10. In addition, the daily ‘RSI-Smoothened’ momentum oscillator is now signaling a negative crossover, indicating further weakness in coming days. Since, the stock has already fallen more than four percent during yesterday’s session, we advise traders to wait for a bounce to sell in a range of Rs. 1,030 - Rs. 1,050 for a target of Rs. 980. The stop loss for this trade set up can be kept at Rs. 1,070.55."
Shares of the company gained Rs 2.4, or 0.24%, to trade at Rs 1,017. The total volume of shares traded was 38,023 at the BSE (12.16 p.m., Wednesday).
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