Rajesh Bhosale, Technical Analyst at Angel Broking has recommended trading strategies on Rajesh Bhosale on how to trade in Deepak Nitrite, Godrej Consumer Products and Apollo Tyres. He gave following rationale for technical strategies:
1. Deepak Nitrite
View-Bullish
Last Close-Rs. 188.95
''After struggling to surpass 185 levels for last four months, stock prices of Deepak Nitrite have finally broken the resistance with a bullish candlestick and above average volume. The said breakout from resistance levels has resulted in a formation of bullish 'Head N Shoulder' pattern. Multiple time frame analysis on RSI with all the three major time frame daily RSI, weekly RSI and monthly RSI above 70 indicates a strong positive momentum in the stock. Thus, we recommend buying this stock at current levels for a target of Rs 219 over the next 5-10 sessions. The stop loss should be fixed at Rs 174.''
2. Godrej Consumer Products
View-Bearish
Last Close-Rs. 912.35
''The stock prices had a steep fall in the first week of August from the levels of 1080 to 860. Post, the steep fall prices went into consolidation phase and now the downside seems to have resumed with prices closing below the lower side of consolidation. On the daily chart, prices have closed below 20-50-89 exponential moving average which indicates weakness across all the major time frames. In addition, we are witnessing a bearish crossover in RSI with its smoothened moving average supporting the sell call. Thus, we recommend selling this stock at current levels for a target of Rs 842 over the next 5-10 sessions. The stop loss should be fixed at Rs 947.''
3. Apollo Tyres
View-Bearish
Last Close-Rs. 248.00
''On the daily chart, prices have marked lower top lower bottom price cycle which is first in last six months indicating a bearish reversal. The said formation resembles bearish 'Head N Shoulder' pattern. In addition, Momentum RSI on the daily chart is heading southwards well below the 30 mark; indicating further weakness in the near term. Thus, we recommend selling this stock at current levels for a target of Rs 234 over the next 5-10 sessions. The stop loss should be fixed at Rs 255.''
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