Sameet Chavan, technical analyst, Angel Broking gave views on the following stocks:
Larsen & Toubro
View-Bullish
Last Close- Rs 1,665.45
"The stock is moving in an uptrend by maintaining ‘Higher Top Higher Bottom’ formation in weekly chart. The stock is currently moving around the lower levels of the upward slopping channel in the daily chart, which coincides with the 78.60% retracement levels of the recent up move from 1,613.45 to 1,819.95. Since December 2014, the stock has bounced back every time from the 78.60% retracement levels of it’s previous up move. The 'RSI' oscillator is trading around its important support of 40 levels. Looking at the above technical evidences, we are expecting the history to repeat itself for one more time. Hence, we advise traders to buy this stock from current level to a decline up to Rs. 1,660 for a target of Rs. 1,750 in coming 2 - 3 weeks. The stop loss for this trade set up can be kept at Rs. 1,627."
2. Infosys
View- Bullish
Last Close- Rs 1,960.90
"The stock is moving in an uptrend by maintaining 'Higher Top Higher Bottom' formation in weekly chart. Recently, after hitting the new all-time high of Rs. 2,336, we have witnessed a sharp correction in the stock. The ongoing correction may halt around current levels as we are witnessing a series of Fibonacci retracement levels. The 'RSI' oscillator is giving a positive reversal in both weekly and monthly chart, indicating reversal on cards. Hence, we advise traders to buy this stock from current level to a decline up to Rs. 1,940 for a target of Rs. 2,040 in coming 2 - 3 weeks. The stop loss for this trade set up can be kept at Rs. 1,907."
3. Tata Motors
View- Bullish
Last Close- Rs. 529.85
"The stock is trading in a channel and prices in last couple of sessions have pulled back higher from the lower end of the channel. The channel support also coincides with the 200 Day EMA, which is acting as a support. The 'RSI' on weekly charts have broken its previous low registered in March whereas prices have not, which is a 'Positive Reversal'. Due to the above mentioned reasons, we are expecting a pullback rally in the prices from current levels. Hence, we advise traders to buy this stock from current level to a decline up to Rs. 525 for a target of Rs. 545 in coming 1 - 2 weeks. The stop loss for this trade set up can be kept at Rs. 517."
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