Devang Shah, Technical Analyst at Angel Broking has recommended trading strategies on Yes Bank, Bharat Heavy Electricals (BHEL) and Bajaj Auto. He gave following rationale for technical strategies:
1. Yes Bank
View-Bullish
Last Close-Rs. 348.65
''On daily chart, the stock is reflecting 'Descending Triangle' breakout from the past consolidation which indicates bullish stance on the counter. Further, if we analyze Bollinger Bands there is a breakout on the upper band which reflects uptrend in further coming sessions. Also, on weekly chart prices are taking support of 30 DEMA. In addition, it is observed that among the oscillators, MACD is positive and RSI is in upward trend breaking the previous highs. Hence, we recommend buying this stock at current levels for a target of Rs 384 over the next 10-15 sessions. The stop loss should be fixed at Rs 322.''
2. Bharat Heavy Electricals (BHEL)
View-Bearish
Last Close-Rs. 67.80
''The stock has been an under performer since last few weeks which clearly is reflecting 'Lower Top & Lower Bottom'. Further prices are well below 20 & 50 DEMA which suggests negative bias. Moreover, momentum oscillator i.e. RSI is showing negative divergence which indicates weakness in the stock and more downside can be seen in further coming sessions also MACD is negative which clearly goes with our bearish stance. Thus, we recommend selling this stock at current levels for a target of Rs 59.50 over the next 10-15 sessions. The stop loss should be fixed at Rs 72.50.''
3. Bajaj Auto
View-Bullish
Last Close-Rs. 2966.95
''In weekly chart, 'Hammer' candle has been formed in the downtrend which indicates reversal of the previous trend. Moreover, momentum oscillator i.e. RSI on weekly chart has also given a bullish range breakout indicating a momentum to pick up in near term, MACD is reflecting a positive bias. Further, Prices are well above 10DEMA, indicating short-term bullishness in the counter. In addition, analyzing Bollinger Bands it clearly goes with our bullish stance. Thus, we recommend buying this stock at current levels for a target of Rs 3180 over the next 10-15 sessions. The stop loss should be fixed at Rs 2813.''
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