Jay Purohit, technical analyst, Angel Broking has recommended trading strategies on NCC, IDBI Bank and Voltas. He gave following rationale for technical strategies:
1. NCC
View-Bullish
Last Close-Rs. 81.00
''The stock has been moving in a broad range from last twelve months. The ongoing consolidation phase has resulted into a formation of 'Descending Triangle pattern' pattern on weekly chart. The stock had given breakout from the mentioned pattern on closing basis. The volumes on the breakout were comparatively higher than the normal, which is a positive sign for the counter. Since, the 'RSI-smoothened' oscillator is placed positively along with other technical indicators; we are expecting a healthy rally in the stock. Thus, any correction towards Rs. 79 would be a buying opportunity for the target price of Rs. 94. The stop loss for the trade set-up can be placed at Rs. 74.''
2. IDBI Bank
View-Bullish
Last Close-Rs. 73.75
''On weekly chart, the stock has formed a 'Higher Top Higher Bottom' structure after a long period of corrective move. Prices had consolidated in a narrow range during the month of June and gave breakout in 1st week of July. On minor corrective move post breakout, the prices have taken support near the 'Super Trend' indicator and the '89DEMA' support which coincide around Rs. 70. The 'Stochastic' indicator on daily chart is indicating positive crossover from the oversold zone. Hence, we are expecting and up move in prices in near term. Thus, traders are advised to buy the stock at current levels and on declines up to Rs. 73 for a target of Rs. 82 in next 14 - 21 sessions. The stop loss for the trade set-up can be kept at Rs. 69.50.''
3. Voltas
View-Bullish
Last Close-Rs. 341.90
''The stock has given breakout from a 'Falling Channel' on weekly chart in May 2016 and moved higher. However, the upward move had taken a pause and stock has seen a decent correction up to 38.20% retracement levels of the previous up move from Rs. 211 to Rs. 349, which coincides with the 'Channel Breakout' levels. The stock has started rebounding precisely from the mentioned support zone. The 'RSI' indicator on weekly chart has also taken support of the 'Trendline' and turned northwards, indicating strength in the counter. Also, the ‘Super Trend’ indicator on daily charts turned in to 'Buy' mode, which support our bullish view on the stock. Thus, the stock can be bought in the range of Rs. 333-Rs. 337 for a target of Rs. 385 in coming three months. A stop loss can be placed at Rs. 310.''
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