Nagesh Arekar, technical analyst, Angel Broking has given his views on the following three stocks:
HDFC Bank
View: Bullish
Last Close: Rs 859.20
"After posting a new life time high of Rs 860.70 (high on July 07, 2014), the stock prices witnessed a gradual correction towards the important support level of daily '89-EMA' placed at Rs 791. This technical tool provided a strong support for the stock and hence, prices once again resumed its uptrend. Looking at past few trading session's movement, it can be seen that the stock consolidated within a narrow range and continuously faced a resistance around Rs 849 - Rs 854. During the Tuesday's session, we witnessed a 'Horizontal Line' breakout from this resistance zone with substantial rise in intraday volumes. In the process, stock prices made a new life time high of Rs. 861.10. Considering the higher degree chart structure, we advise traders to buy this stock from a current level to a decline up to Rs 851 for a target of Rs 902 in coming 2 - 3 weeks. The stop loss for this trade set up can be kept at Rs. 835."
Axis Bank
View: Bullish
Last Close: Rs 409.25
"Similar to its peers, 'Axis Bank' too has been the major contributor in past few months. During the Tuesday's session, the stock gave a breakout from the 'Cup and Handle' pattern and registered a new all time high. The intraday volume activity has picked up substantially during the session, providing credence to the breakout. In addition, the 'RSI-Smoothened' momentum oscillator is rising gradually from the 50 mark, which is a sign of strength. Considering all these technical evidences, we advise traders to buy this stock from a current level to a decline up to Rs 407 for a target of Rs 435 in coming 2 - 3 weeks. The stop loss for this trade set up can be kept at Rs 397."
NMDC
View: Bullish
Last Close: Rs 174.45
"The stock prices experienced a sharp decline after posting a new multi-year high of Rs 196 (high on June 06, 2014). This correction got arrested in the first half of July 2014. Since then the stock has been lingering around the daily '89 EMA' by maintaining very narrow trading range. During the session, we are observing a significant rise in intraday volumes amid strong movement on the upside. The daily momentum oscillators are also supporting this price action by signaling a positive crossover. Looking at these parameters, we expect the stock to give a breakout from the 'Downward Sloping Trend Line' around Rs 175.50. In anticipation of this up move, we advise traders to buy from current level to a decline up to Rs 172 for a target of Rs. 188 in coming 2-3 weeks. The stop loss for this trade set up can be kept at Rs 167."
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