Nagesh Arekar, technical analyst, Angel Broking has given his views on the following three stocks:
1. Siemens:
View: Bearish
Last Close: Rs. 803
"After posting a new 52-week high of Rs 1,017.70, the stock prices immediately slipped in to a profit booking mode. Since then it is continuously trading in a 'Lower Top Lower Bottom'formation on the daily chart. During Tuesday's session, the stock prices sneaked below the important support level of Rs 838 and then witnessed sharp correction throughout the remaining session. This prices action was supported by the incremental volumes. Considering the daily chart structure, we expect the stock prices to correct from current levels. However, keeping in mind, the favorable risk to reward ratio, we would advise traders to sell this stock only in a range of Rs. 810 - Rs. 820 for a target of Rs 750 in coming 7 to 8 trading session. The stop loss for this trade set up can be maintained at Rs 848."
Shares of the company declined Rs 13.4, or 1.67%, to trade at Rs 790.20. The total volume of shares traded was 21,835 at the BSE (10.38 a.m., Wednesday).
2. SAIL:
View: Bearish
Last Close: Rs. 82.55
"Recently, after posting a new 52-Week high of Rs 113.55, the stock prices immediately corrected by more than 30%. Since then, stock prices are continuously finding support near the 80 mark. Going forward, any sustainable move below this level would trigger the pessimism in the stock. In this scenario, stock prices may correct towards the important support level of Rs 75. Considering all these parameters, we advise traders to sell the stock once the prices fall below Rs. 80.50 for a target of Rs 75 in coming 7 to 8 trading sessions. The stop loss for this trade set up can be kept at Rs 83.20."
Shares of the company gained Rs 0.05, or 0.06%, to trade at Rs 82.65. The total volume of shares traded was 58,314 at the BSE (10.38 a.m., Wednesday).
3. Bharat Heavy Electricals (BHEL):
View: Bullish
Last Close: Rs. 233
"Looking at daily chart, it is clearly seen that the stock prices broke out from the 'Falling Wedge' pattern around Rs 225 on Aug. 20, 2014. However, we did not witness any follow up buying after this development. Considering Tuesday's sharp recovery from the lower levels of Rs 224 along with the higher volumes, we expect the stock to give some upside rally in the near term. It's advisable to buy this stock from current level to a decline up to Rs. 229 for a target of 242 in coming 6 - 8 trading sessions. The stop loss for this trade set up can be maintained at Rs. 223.50."
Shares of the company gained Rs 1.8, or 0.78%, to trade at Rs 234. The total volume of shares traded was 142,568 at the BSE (10.38 a.m., Wednesday).
