Jay Purohit, technical analyst, Angel Broking has recommended trading strategies on Tata Global, Raymond and Tata Sponge. He gave following rationale for technical strategies:
1. Tata Global
View-Bullish
Last Close-Rs. 145.90
''After a decent rally from Rs. 116.45 to Rs. 147.15, the stock has started moving in sideways direction. The consolidation phase of last five weeks has resulted into formation of a 'Bullish Flag' pattern on daily chart. On March 16, 2017, we are witnessing a breakout from the mentioned pattern with healthy volumes. The set of moving averages 'E5', 'E20' and 'E89' along with 'Parabolic SAR' indicator are placed positively on daily chart. Also, the 'RSI' oscillator on daily chart indicates strength in the counter. Considering above technical evidences, we are expecting good up move in the counter. Hence, we advise traders to buy this stock at current levels to a decline up to Rs. 144 for a target of Rs. 158 in coming days. The stop loss should be fixed at Rs. 138.''
2. Raymond
View-Bullish
Last Close-Rs. 666.45
''The stock is moving in an uptrend by maintaining 'Higher Highs Higher Lows' on monthly chart. Recently, the stock had rallied from Rs. 495 to Rs. 668 with huge volumes. Thereafter, it started moving in sideways direction. On Tuesday, the stock has showed some strength with decent volumes. At the same time, the stock is in verge of giving 'Trend line' breakout on monthly chart. The 'RSI-Smoothened' on monthly chart is moving northward and thus showing strength in the counter. Looking at this development, we expect the stock prices to give a breakout on monthly chart. With an anticipation of this move, we advise traders to buy this stock at current levels to a decline up to Rs. 660 for a target of Rs. 745 over the next 14 to 21 sessions. The stop loss should be fixed at Rs. 620.''
3. Tata Sponge
View-Bullish
Last Close-Rs 685.55
''Recently, the stock had given a 'Trendline' breakout on daily chart with healthy volumes. The broader trend for the stock is up, and such breakouts indicate continuation of the trend. However, the stock has started moving in sideways direction post the breakout. But, the trend following indicators such as '5 & 20 DEMA' and the 'Parabolic SAR' are indicating higher probability of an up move in near term. The 'RSI' oscillator is trading above the 60 level on daily, weekly as well as monthly chart, suggesting positive momentum in the stock. Considering above technical evidences, we are expecting the stock to move higher in near term. Hence, we advise traders to buy this stock at current levels to a decline up to Rs. 680 for a target of Rs. 745 in upcoming weeks. The stop loss should be fixed at Rs. 655.''
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