Jay Purohit, Technical and Derivative Analyst at Angel Broking has recommended trading strategies on Jay Purohit on how to trade in Power Grid, Hindustan Zinc and Manappuram Finance. He gave following rationale for technical strategies:
1.Power Grid
View-Bullish
Last Close- Rs. 210.25
''The stock is moving in a strong uptrend by maintain 'Higher Highs Higher Lows' on weekly chart. From last few weeks, the stock is moving in a sideways direction and thus formed a 'Symmetrical Triangle' pattern on daily chart. Today, we witnessed a breakout from the mentioned pattern with healthy volumes. Since the momentum oscillator 'RSI' is placed positively on both daily and weekly chart, we are expecting continuation in upward momentum in the counter. Thus, we advise traders to buy this stock at current levels to a decline up to Rs. 208 for a target of Rs. 225. The stop loss should be fixed at Rs. 204.''
2. Hindustan Zinc
View-Bullish
Last Close-Rs. 244.40
''The stock had a splendid move in last one and half year as it rallied from Rs. 107.70 to Rs. 304.90. However, some profit booking correction was seen in the counter in the recent past. The correction seems to be over around 225 - 230 zone as the stock is taking support around 38.20% retracement levels of the mentioned rally, which coincides with the previous 'Swing Low' on weekly chart. The stock has rebounded in last few sessions and thus made a 'Higher Low Higher High' on daily chart after three months. The 'RSI' oscillator is also taking support around 40 mark and started moving northwards. Considering above technical evidences; we are expecting a decent up move in the counter. Thus, traders are advised to go long at current juncture and on declines to Rs. 242 for a target of Rs. 259 in upcoming weeks. The stop-loss should be placed below Rs. 236.''
3. Manappuram Finance
View-Bullish
Last Close-Rs. 93.50
''Since last few months, this stock has been consolidating in a broad range. Recently, the prices have taken support near its '200 EMA' on the daily charts and have reverted higher. On Thursday, the stock has given a breakout from 'Falling Trendline' resistance on daily chart with healthy volumes. Also, the 'RSI' Oscillator on the daily chart is indicating a positive momentum. Considering the above setup, we are expecting resumption of the uptrend in the counter. Hence, we advise traders to buy this stock at current levels and on declines at Rs. 92.50 for a target of Rs. 104 in upcoming week. The stop loss should be fixed at Rs. 89.25.''
