Jay Purohit, Technical Analyst at Angel Broking has recommended trading strategies on Fortis Healthcare, Engineers India and Den Networks. He gave following rationale for technical strategies:
1. Fortis Healthcare
View: Bullish
Last Close: Rs. 207.90
''The stock had recently given a breakout from a consolidation phase of about two years. The breakout was support with high volumes which provides confirmation to the breakout. In last few trading sessions, the stock has seen some correction and is now trading near the breakout levels which should now act as support. Also, the support coincides with the 38.2 percent retracement of the recent up move. On hourly charts, prices are now trading near the '200 SMA support and thus, we expect the stock to resume the uptrend from current levels. Considering above technical evidences; we advise traders to buy this stock at current levels to a decline up to Rs. 205 for a target of Rs. 230. The stop loss should be fixed at Rs.193.''
2. Engineers India
View: Bullish
Last Close: Rs. 173.50
''The stock has been forming a 'Higher Top Higher Bottom' structure and is in an uptrend. Post a swift up move from Rs.144 to Rs. 174, the prices have been consolidating in a narrow range since last few trading sessions. This has led to formation of a 'Bullish Flag' pattern on the daily charts. In today's trading session, prices are indicating breakout from the pattern with healthy volumes, which indicates continuation of the uptrend. Considering above technical evidences; we are expecting a rally towards Rs. 1800 in upcoming weeks. Thus, any correction towards Rs. 171 would be a buying opportunity for traders with a stop-loss of Rs. 163.''
3. Den Networks
View: Bullish
Last Close: Rs. 99.75
''Post a decent correction, the stock has formed a 'Double Bottom' pattern on both weekly and monthly chart and rebounded piercingly. In the ongoing up move, the stock has made a 'Higher High Higher Low' formation on weekly chart for the first time in last one year. Recently, the stock has given a breakout from couple of 'Trend lines' on weekly chart and managed to sustain above the same. However, follow-up buying was not that strong and as a result, the stock is moving in a consolidation phase from last couple of weeks. The positive placement of moving averages and 'RSI' oscillator is showing strength in the counter. Considering above technical evidences; we are expecting a healthy rally in this counter. Thus, we advise traders to buy this stock at current levels to a decline up to Rs. 98 for a target of Rs. 117 in forthcoming week. The stop-loss should be fixed at Rs. 95.''
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