Sameet Chavan, technical analyst, Angel Broking gave views on the following stocks:
1. Dish TV
View: Bearish
Last Close: Rs 80.95
This stock has witnessed a good price appreciation over the past couple of months ever since it broke out from its important resistance of Rs 65 on a sustainable basis. This up move was steady in nature and hence, we could see a formation of the 'Upward Sloping Channel' on the daily chart. The said pattern has now been violated on a closing basis as the lower end of Rs 82 got breached. This also led to a formation of a 'Lower Top Lower Bottom', indicating weakness in prices. This breakdown was supported by more than twice of its daily volumes. Hence, we advise traders to sell this stock from current level to a bounce up to Rs 82 for a target of Rs 74 in coming 1-2 weeks. The stop loss for this trade set up can be kept at Rs 83.50.
2. BHEL
View: Bearish
Last Close: Rs 264.80
Although, the higher degree charts of BHEL are indicating uptrend; in the near term the stock is directionless. The price movement since mid December 2014 has resulted in formation of a bearish pattern which resembles 'Head and Shoulder' (please refer the exhibit). The neckline of the said pattern is seen at Rs 255, which are the multiple support zones. During Friday's session, we witnessed a breakdown from this neckline level; thus, confirming a bearish implication of the pattern. The stock has now given a decent bounce over the past couple of trading sessions. Despite this, we maintain our negative stance on the stock so long as it manages to trade below the 268 mark. Hence, traders are advised to sell this stock at current level for a target of Rs 250 in coming 1-2 weeks. The stop loss for this trade set up can be kept above Rs 268.
3 IOC
View: Bullish
Last Close: Rs 347.25
The stock had undergone a decent 'Price-Wise' as well as 'Time-Wise' correction after posting a new 'Multi-Year' high of Rs 411.20 during the month of September 2014. This corrective phase ended around the strong resistance zone of the weekly ’89 EMA’ placed at Rs 305. After finding a support around this mentioned level, the stock started moving higher and then went on to confirm a 'Higher Top Higher Bottom’ formation on the daily chart. This price development followed by a consolidation of nearly 8 to 10 trading sessions during which the stock successfully managed to defend the daily '89 EMA' level of Rs 338. On the hourly chart, we are now observing a breakout from the small 'Triangular' pattern around Rs 345. Hence, combining all the above evidences, we expect the stock to resume its higher degree uptrend. Thus, we, advise traders to buy this stock from current level to a decline up to Rs 343 for a target of Rs 365 in coming 2-3 weeks. The stop loss for this trade set up can be kept at Rs 334.
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