Jay Purohit, technical analyst, Angel Broking has recommended trading strategies on HDFC Bank, Idea and Coal India. He gave following rationale for technical strategies:
1. HDFC Bank
View- Bullish
Last Close - Rs. 1,018.45
''The stock is moving in an uptrend by maintaining Higher Top Higher Bottom formation in the weekly chart. The stock has corrected significantly in the recent past has reached towards its major support of 200 EMA in the daily chart. At current juncture, we are also observing a formation of a Bullish Harmonic Pattern called Bullish Bat Pattern in the daily chart, whose Potential Reversal Zone (PRZ) is placed at Rs. 987- Rs. 999 levels. The RSI oscillator is moving in the oversold territory in the daily chart, indicating reversal on cards. Looking at the current chart structure, we are healthy bounce in the counter. Thus, we advise traders to buy this stock in the range of Rs. 995 to Rs 1005 for a target of Rs. 1060 in coming 12 to 15 trading sessions. The stop loss for this trade set up can be kept at Rs. 973.''
2. Idea Cellular
View- Bearish
Last Close - Rs. 151
''The stock has under-performed broader indices in the recent past. The fall gets accelerated after the stock broke its major support of Rs. 165 levels in the first week of August 2015. On Monday, the stock has given breakdown from the Rising Trendline with the downside gap in the weekly chart. Yesterday, we witnessed some pull back in the stock towards the breakdown levels. The previous breakout trendline, which is placed at Rs 1387, will also act as a strong support for the stock, which coincides with the 89 EMA in the daily chart. On oscillator front, the RSI - smoothened is moving well below its average and also broke its previous low in the weekly chart, indicating further weakness in the counter. Since, the momentum oscillators and moving averages are placed negatively; we are expecting resumption in the down move. Thus, we advise traders to sell this stock at current levels and on a rise up to Rs. 153 for a target of Rs. 139 in upcoming sessions. The stop loss for this trade set up should be kept at Rs. 158.''
3. Coal India
View - Bullish
Last Close - Rs. 353.60
"The stock has corrected sharply in last three weeks. The fall was too strident and didn't have any major pull-backs in between. Usually, such sharp moves fizzle out soon on account of the short covering. The price action of last three sessions resembles the formation of the Morning Star pattern, which can be a trigger for the decent recovery in the counter. The RSI oscillator is giving positive crossover its average in the daily chart from the oversold territory. Considering all these technical evidences, we are expecting a decent bounce in the counter. Hence, we advise traders to buy this stock at current levels and on dips to Rs. 350 for a target of Rs. 370 in coming 5 - 7 trading sessions. The stop loss for this trade set up can be kept at Rs 340.''
