Rajesh Bhosale, Technical Analyst at Angel Broking has recommended trading strategies on Escorts, Amara Raja Batteries and Havells.
1. Escorts
View-Bullish
Last Close-Rs. 660.60
''The auto sector has been an underperformer in the last few months, however, we now sense a bottom out in this sector as well in its constituents. Similarly, the stock prices of ESCORTS seem to have bottomed out with a bullish reversal pattern breakout seen on the daily chart known as 'Double Bottom'. The said breakout was seen around 650 levels on November 01st with a bullish breakaway gap and post breakout prices after making a high of 695 are retesting the breakout levels giving a re-entry point. Oscillators front the lead indicator RSI continues to remain in a positive zone supporting the buy call. Thus, we recommend buying this stock at current levels for a target of 720 over the next 5-10 sessions. The stop loss should be fixed at Rs 628.''
2. Amara Raja Batteries
View-Bearish
Last Close-Rs. 743.40
''On the daily chart, stock prices have closed below an advancing trend line which had acted as strong support for the last two months and now indicates a bearish breakdown. In addition, we are witnessing a fresh bearish crossover in RSI with its smoothened moving average. Moreover, prices are well below all the major moving averages i.e. 20DSMA, 50DSMA and 200DSMA which indicate overall weakness in the counter. Looking at all the above scenario a southward move in the stock cannot be ruled out. Thus, we recommend selling this stock at current levels for a target of Rs 700 over the next 5-10 sessions. The stop loss should be fixed at Rs 767.''
3.Havells
View-Bullish
Last Close-Rs. 666.15
''The stock is in an uptrend continuously moving in a 'Higher Top Higher Bottom' price formation. On the daily chart, stock prices after the sharp up move seen in the October month from the levels of 550 to 650 went into consolidation for the last few sessions and prices have now closed above the higher side of consolidation confirming a bullish continuation pattern known as 'FLAG'. The said breakout is supported with a good increase in volume and bullish candlestick pattern. In addition, oscillators and major averages are placed in positive zone supporting the buy call. Thus, we recommend buying this stock at current levels for a target of Rs 700 over the next 5-10 sessions. The stop loss should be fixed at Rs 648.''
