Nagesh Arekar, technical analyst, Angel Broking has given his views on the following three stocks:
1. Axis Bank
View: Bearish
Last Close: Rs 399.10
It's been nearly four months; the stock has been vacillating within the 'Upward Sloping Channel' on the daily chart. Recently, the stock prices precisely faced a strong resistance around the higher end of the ‘Channel’ and then corrected a bit. The consolidation happened in last 4-5 trading sessions has resulted in a formation of a small 'Upward Sloping Channel' on the hourly chart. This pattern has now been violated on the downside, indicating weakness in the stock. The placement of the hourly 'RSI- Smoothened' momentum oscillator is also signaling a possibility of a near term correction. Hence, we advise traders to sell this stock from current level to a bounce up to up to Rs 403 for a target of Rs 380 in coming 1-2 weeks. The stop loss for this trade set up can be kept at Rs 412.
2. M&M
View: Bearish
Last Close: Rs 1,347.60
Since last few trading sessions, the stock is trading within the narrow trading range. During Monday's session, we witnessed a breakdown from the recent swing low of Rs 1353.25 (Low of Sept 18, 2014). This price action resulted in a formation of a 'Lower Top Lower Bottom' on the daily chart. The placement of weekly momentum oscillator, such as 'RSI-Smoothened' is also indicating a possibility of near term correction in the stock. Hence, we advise traders to sell this stock from current level to a bounce up to Rs 1,360 for a target of Rs. 1275 in coming 1-2 weeks. The stop loss for this trade set up can be kept at Rs 1384.
3. Bharti Airtel
View: Bearish
Last Close: Rs 406.50
Due to past few day's movement, we are observing a cluster of 'Narrow Range' body formations, indicating exhaustion of the ongoing uptrend. During Tuesday's session, we witnessed a breakdown from the important support zone of the hourly '89-EMA' level placed at Rs. 408. This price action has now resulted in a 'Lower Top Lower Bottom' formation on the hourly chart. Also, the placement of the daily momentum oscillators is suggesting a possibility of some profit booking in the stock. Hence, we advise traders to sell this stock from current level to a bounce up to up to Rs 410 for a target of Rs 380 in coming 1-2 weeks. The stop loss for this trade set up can be kept at Rs 421.
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