Nagesh Arekar, technical analyst, Angel Broking is bearish on Titan, LIC India and GAIL. Following are the three stocks:
1. Titan
View: Bearish
Last Close: Rs 376.35
"Recently, the stock prices posted a new all time high of Rs 397.95 (High of Sept 09, 2014) and since then it's been consolidating in a narrow range. On Tuesday, we witnessed a breakdown from the strong support zone of the hourly '89-EMA' placed at Rs 381. In addition, the weekly momentum oscillators are turning downside from the extreme overbought zone, indicating possibility of a near term correction. Hence, we advise traders to sell this stock only in the range of Rs 377 to a bounce up to Rs 380 for a target of Rs 356 in coming 1-2 weeks. The stop loss for this trade set up can be kept at Rs 389."
2. LIC India
View: Bearish
Last Close: Rs 306.15
"Looking at the hourly chart, it is clearly seen that the stock has a multiple support zone around Rs 313, which coincides with the hourly '89 EMA'. During the Tuesday's session, the prices managed to sneak below it which is sign of weakness. This development is supported by the negative crossover in the daily 'RSI-Smoothened' oscillator, indicating possibility of further downside from current level. Hence, we advise traders to sell this stock from Rs 308 to a bounce up to of Rs 312 for a target of Rs 289 in coming 1-2 weeks. The stop loss for this trade set up can be kept at Rs 319."
3. GAIL
View: Bearish
Last Close: Rs 448.55
"After a consolidation of nearly 8-10 trading sessions, the stock has broken down from the near term congestion zone of Rs 468-Rs 451. In the process, the stock prices sneaked well below the strong support of the hourly '89 EMA', indicating weakness in the lower degree chart. The daily 'RSI-Smoothened' momentum oscillator is now confirming a negative crossover from the extreme overbought territory, signaling immediate down move. Considering all these evidences, we advice traders to sell this stock from current level to a bounce up to Rs 451 for a target of Rs 422 in coming 4-5 trading sessions. The stop loss for this trade set up can be kept at Rs 460."
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