Nagesh Arekar, technical analyst, Angel Broking gave views on the following three stocks:
1. IDFC
View: Bullish
Last Close: Rs 144.90
"After consolidating around the daily '89 EMA' for nearly 8 - 10 trading sessions, the stock finally managed to break out from the 'Downward Sloping Trend Line' around Rs 143. In addition, the volume activity is also picked up substantially, providing credence to the breakout. Considering the higher degree bullish chart structure and the positive crossover in the daily 'RSI-Smoothened' momentum oscillator, we expect this stock to start a fresh leg of the rally. Considering these evidences, we advise traders to buy this stock from current level to a decline up to Rs. 143 for a target of Rs 159 in coming 2 - 3 weeks. The stop loss for this trade set up can be kept at Rs 138."
Shares of the company gained Rs 1.55, or 1.07%, to trade at Rs 146.45. The total volume of shares traded was 275,819 at the BSE (11.38 a.m., Wednesday).
2. IRB Infra
View: Bullish
Last Close: Rs 242.75
"Similar to most of the counters, the recent correction in 'IRB Infra' halted near the daily '89 EMA'. The stock has been hovering around this strong support zone since last couple of weeks. During the Tuesday's session, we witnessed a breakout from the small trading range on the upside along with the higher volumes. In addition, the daily 'RSI-Smoothened' momentum oscillator is maintaining its positive posture around the oversold territory. Keeping in mind its higher degree uptrend, we advise traders to buy this stock from current level to a decline up to Rs. 237 for a target of Rs 256 in coming 2 - 3 weeks. The stop loss for this trade set up can be kept at Rs 231.50."
Shares of the company gained Rs 4.05, or 1.67%, to trade at Rs 246.50. The total volume of shares traded was 159,684 at the BSE (11.38 a.m., Wednesday).
3. Tata Steel
View: Bullish
Last Close: Rs 455.70
"The overall 'Metal' sector has seen a decent amount of correction over the past couple of months. In the process, one of the heavyweight constituents 'Tata Steel' corrected nearly 20% from its recent highs. However, considering past couple of week's price movement, it seems that the near term correction has been arrested slightly above the weekly '89 EMA' level placed around Rs 425 and the stock is now on the verge of resuming its higher degree trend i.e. bullish. The hourly chart is showing some early signs of strength with the positive placement of the daily 'RSI-Smoothened' momentum oscillator. Hence, we advise traders to buy this stock from current level to a decline up to Rs 453 for a target of Rs.480 in coming 1 - 2 weeks. The stop loss for this trade set up can be kept at Rs. 445."
Shares of the company gained Rs 3.05, or 0.67%, to trade at Rs 458.85. The total volume of shares traded was 165,956 at the BSE (11.38 a.m., Wednesday).
