Nagesh Arekar, technical analyst, Angel Broking has given his views on the following three stocks:
1. State Bank of India (SBI):
View: Bearish
Last Close: Rs. 2,445.70
Similar to other PSU Banking counters, 'SBI' too remained under some selling pressure in the last week. In the process, the stock prices sneaked below the strong support zone of the daily '89-EMA' placed around Rs 2,445. This sell off was followed by a modest bounce back from the recent lows. But, we interpret this bounce back as a pull back of the downward move. Considering the hourly chart structure, we advise traders to sell this stock once prices sustains below Rs 2,435 for a target of Rs. 2,340 in coming 1 - 2 weeks. The stop loss for this trade set up can be kept at Rs. 2,505.
Shares of the bank declined Rs 7.35, or 0.3%, to trade at Rs 2,435. The total volume of shares traded was 46,176 at the BSE (10.46 a.m., Wednesday).
2. ACC:
View: Bearish
Last Close: Rs. 1,399.55
Recently, the stock underwent a significant correction from the high of Rs. 1,564.65 (high on Sept. 03, 2014). In the process, the stock prices managed to traverse the daily '89 EMA' level of Rs.1440 on the downside, which is a sign of weakness. This was followed by a modest technical bounce in the stock for next two days. However, this bounce back was very short lived as the stock failed to surpass the '89 EMA', which would now act as a strong resistance. Considering the sharp downward movement along with the sizable volumes in the hourly chart during Tuesdays session, we advise traders to sell this stock only in a range Rs.1,410 to Rs.1,420 for a target of Rs.1,335 in coming 7 - 8 trading session. The stop loss for this trade set up can be kept at Rs.1,460.
Shares of the company gained Rs 0.15, or 0.66%, to trade at Rs 23. The total volume of shares traded was 4 at the BSE (10.46 a.m., Wednesday).
3. Indian Oil Corporation (IOC):
View: Bearish
Last Close: Rs. 362.40
After posting a life time high of Rs 411.20 (High on Sept. 12, 2014), the stock prices corrected significantly in last few trading sessions. Looking at the daily chart, it seems that the fall has been arrested around the strong support zone of the daily '89-EMA' level placed around Rs.345. During Tuesday's session, the stock prices managed to surge higher with substantial rise in the volumes, indicating possibility of a strong up move. Hence, we advise traders to buy this stock from current level to a decline up to Rs 357 for a target of Rs.382 in coming 1 - 2 weeks. The stop loss for this trade set up can be kept at Rs.349.
Shares of the company gained Rs 3, or 0.83%, to trade at Rs 364.50. The total volume of shares traded was 51,413 at the BSE (10.46 a.m., Wednesday).
