Ruchit Jain, Technical Analyst at Angel Broking has recommended trading strategies on Ruchit Jain on how to trade in Indusind Bank, Gujarat State Fertilizers & Chemicals (GSFC) and Delta Corp. He gave following rationale for technical strategies:
1. IndusInd Bank
View-Bearish
Last Close-Rs 1,570.10
''This has been one of the steady outperforming stocks within the 'Private' banking space. At present, the stock is trading at its all time high; but, we are now observing a possibility of some short term correction Due to last three months price action, we can see a formation of 'Wolfe Wave' on daily chart. As per the requirement of this pattern, all 5 points are visible and 5th point placement is precisely at 'Golden Ratio' (161% Fibonacci Retracement) of the previous down move (from 3 to 4). The said pattern needs a confirmation of some reversal pattern at the 5th point, which we can see in the form of a 'Dragonfly Doji' pattern. Hence, traders are advised to sell this stock at current levels for a target of Rs 1,518 over the next 5-10 sessions. The stop loss should be fixed at Rs 1,599.''
2. GSFC
View-Bullish
Last Close-Rs 127.80
''In the recent past, the stocks within the Fertilizer sector has seen upmove in prices along with good volumes, which indicates a positive trend for the sector. Within this space, GSFC has recently given a pullback move from its medium trend support of Rs 112. On the lower time frame charts, the prices are now indicating a probability of breakout from its resistance zone and thus, we believe the prices would move higher in near term. Hence, traders are advised to buy this stock at current levels and on declines at Rs 124 for a target of Rs 137 over the next 14-21 sessions. The stop loss should be fixed at Rs 118.''
3.Delta Corp
View-Bullish
Last Close-Rs 165
''In last couple of months the prices have seen a consolidating phase around its long term support of '200 SMA'. The prices structure during this consolidation has led to formation of an 'Inverted Head & Shoulders' pattern on the daily chart. The mentioned pattern is a trend reversal pattern and prices are on the verge of a breakout. Hence, traders are advised to buy this stock at current levels for a target of Rs 190 over the next 14-21 sessions. The stop loss should be fixed at Rs 156.''
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