Rajesh Bhosale, Technical Analyst at Angel Broking has recommended trading strategies on how to trade in Tata Motors, DCB Bank and Jindal Stainless (Hisar). He gave following rationale for technical strategies:
1. Tata Motors
View-Bullish
Last Close-Rs 194.05
''This stock has been an underperformer since last one year however post making a panic low at 129 following its quarterly results this stock has steadily recovered in the last few weeks. At the current juncture, stock prices have now closed above its previous swing high thus confirming a bullish reversal pattern on the daily chart known as 'Rounding Bottom'. The said breakout is supported with a good increase in volume. In addition, stock prices have closed above 89EMA which thrice acted as stiff resistance in last one year. Looking at all the above scenario a strong upside from the current levels cannot be ruled out. Thus, we recommend buying this stock at current levels for a target of Rs 216 over the next 14-21 sessions. The stop loss should be fixed at Rs 181.''
2. DCB Bank
View-Bullish
Last Close-Rs 194.05
''The stock is in a strong uptrend continuously moving in a higher top higher bottom price cycle. Stock prices have now given a multiple pattern bullish breakout; on the daily chart we are witnessing an ' Inv Head N Shoulder' breakout whereas on the higher time frame weekly chart we are witnessing a trend line breakout. The volume analysis on the recent price action shows low volume during down move whereas comparatively high volumes while up move indicating a strong accumulation in the stock. Thus, we recommend buying this stock at current levels for a target of Rs 215 over the next 14-21 sessions. The stop loss should be fixed at Rs 182.''
3. Jindal Stainless (Hisar)
View-Bullish
Last Close-Rs 94.70
''On the daily chart, stock prices after forming a base for a month around 85 levels have now bounced back to confirm a bullish reversal pattern known as 'Inv Head n Shoulder'. The recent up move from the support levels is witnessed with huge volume indicating accumulation by strong hands. In addition, stock prices are now trading above 20 & 89 EMA which indicates that the short to medium term trend is positive. Momentum oscillator i.e. RSI as well is in the positive zone supporting the buy call. Thus, we recommend buying this stock at current levels for a target of Rs 110 over the next 14-21 sessions. The stop loss should be fixed at Rs 86.''
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