Nagesh Arekar, technical analyst, Angel Broking gave views on the following three stocks:
1. Asian Paints
"Looking at the monthly chart, it is clearly seen that the stock has maintained its uptrend since its inception. The lower degree charts like, weekly and daily charts are also trading in a ‘Higher Top Higher Bottom’ formation, indicating near term optimism in the stock. Over the past few sessions, the stock consolidated within a range, which has resulted in a formation of a ‘Diamond’ pattern on the hourly chart. Since, the breakout has happened on the higher side, this pattern would have a bullish implication. The volumes have also picked up substantially in past few sessions. Considering the positive placement of the daily momentum oscillators, we advise traders to buy this stock from current level to a decline up to Rs.596 for a target of Rs.648 in coming 3- 4 weeks. The stop loss for this trade set up can be kept at Rs. 576.45."
2. Grasim
"Looking at the daily and weekly charts, it is clearly seen that the stock has witnessed a decent price correction over the past few weeks. This price-wise correction was quite important from a medium term perspective. Recently, stock prices managed to breakout from the small ‘Downward Sloping Channel’. After a decent pullback of nearly three percent, the stock has now started a fresh leg of the rally. In addition, the daily ‘RSI-Smoothened’ momentum oscillator is given a positive crossover. Hence, we advise traders to buy this stock from current level to a decline up to Rs. 3,370 for a target of Rs. 3580 in coming 2 - 3 weeks. The stop loss for this trade set up can be kept at Rs. 3,305."
3. Punjab National Bank
"Recently, after witnessing a sharp up move, most of the banking stocks slipped in to a profit booking mode. However, in case of ‘Punjab National Bank’, this corrective move got extended and in the process, prices broke down below the ‘Horizontal line’ placed at Rs. 940. From the breakdown point, prices immediately fell by nearly 8% and then again bounced back towards it. This level coincides with the Hourly ’89-EMA’ as well as the daily ’20-EMA’ placed at Rs. 940. During the Tuesday’s session, we witnessed some early signs of weakness in the prices. Thus, we advise traders to sell this stock only if it sustain below Rs. 911 level, for a target of Rs. 852 in coming 6 - 8 trading sessions. The stop loss for this trade set up can be kept at Rs. 941."
