Ruchit Jain, Technical Analyst at Angel Broking has recommended trading strategies on Ruchit Jain on how to trade in Arvind, Glenmark Pharma and DLF. He gave following rationale for technical strategies:
1. Arvind
View-Bullish
Last Close-Rs. 381.10
''This stock has been in a consolidation phase since last couple of months. In Monday's trading session, the prices have given a breakout from a falling trendline resistance supported by higher volumes. The 'RSI' oscillator on the daily chart too is indicating a positive momentum. Further, the 'SuperTrend' indicator on the daily chart has given a 'BUY' signal after a period of three months. Considering these reasons, we are expecting the stock to move higher in near term. Thus, we recommend buying this stock at current levels and on corrections up to Rs 376 for a target of Rs 412 over the next 14-21 sessions. The stop loss should be fixed at Rs 359.50.
2. Glenmark Pharma
View-Bearish
Last Close-Rs. 668.25
''Along with the Pharma sector, this stock too has underperformed the broader indices in last few months. The stock is trading in a downtrend and the recent pullback move have resisted around the '89 EMA' on the daily charts. The set of moving averages '5& 20 EMA' has again given a negative crossover, thus indicating resumption of the downtrend. Hence, we advise traders to sell this stock on pullback move around Rs 675-680 for a target of Rs 640 over the next 5-10 sessions. The stop loss should be fixed at Rs 695.''
3. DLF
View-Bearish
Last Close-Rs. 178.60
''Since last three months, the stock is consolidating in a range and has shown a time-correction post an uptrend. However, on Tuesday, the prices gave a breakdown from its support of '89 DEMA' and the set of moving averages '5& 20 EMA' has given a negative crossover. This indicates that the stock could undergo a price correction as well in near term. Thus, in near term, we expect the stock to retrace the previous uptrend and hence, we advise traders to sell the stock in the range of 183-185 for a target of Rs 165 in next 5-10 trading sessions. The stop loss should be fixed at Rs 194.''
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