Jay Purohit, technical analyst, Angel Broking has recommended trading strategies on ACC, Hindustan Petroleum and Bajaj Auto. He gave following rationale for technical strategies:
1. ACC
View- Bullish
Last Close - Rs. 1,332.20
''The stock is moving in the corrective phase from last six months and has reached near to its crucial support of Rs 1,310 - Rs 1,330 in the weekly chart, which coincides with the 50% retracement levels of the entire rally from Rs 929.20 to Rs 1743.62. On lower degree time frame i.e. daily; we are observing a formation of a Bullish Wolfe Wave pattern, which will get conformed above Tuesday's high of Rs 1,343.90. The fifth leg of the mentioned pattern probably ended around the 127.20% reciprocal retracement of the up move from Rs 1,350 to Rs 1,454.35. On oscillator front, the RSI is giving a series of positive divergence in the daily chart, indicating reversal on cards. Looking at the current chart structure, we advise traders to buy this stock only above Rs 1,345 for a target of Rs 1,418 in coming 12 to 15 trading sessions. The stop loss for this trade set up can be kept at Rs 1,305.''
2. Hindustan Petroleum
View- Bearish
Last Close - Rs. 814.85
''The stock has outperformed the broader indices in last two years. But, we witnessed some corrective action in the stock in the recent past. After the sharp fall from Rs 990.95 to Rs 752.50, the stock has bounced back in last five trading session and is resisting around the 38.20% retracement levels of the entire fall from Rs 990.95 to Rs 752.50, which coincides with the 40 EMA in the daily chart. The RSI - smoothened oscillator is placed negatively and thus indicating weakness in the counter. Considering the negative placement of the moving averages and momentum oscillator, we advise traders to sell this stock at current levels and on a rise up to Rs 825 for a target of Rs 740 in upcoming sessions. The stop loss for this trade set up should be kept at Rs. 860.''
3. Bajaj Auto
View-Bearish
Last Close -2249.90
''The stock had given breakdown from the Head and Shoulder pattern in the daily chart on Aug. 21, 2015, which indicated reversal of the trend. The fall was supported by heavy volumes, which further validated the breakdown. From the last five trading sessions, the stock is moving in the consolidation phase, which may pull back the stock up to Rs 2,300 - Rs. 2,315 levels, which is the 38.20% retracement level of the recent fall from Rs 2,608 to Rs 2,133. 65. But, that pull back will be a selling opportunity as the fall is impulsive in nature. The RSI oscillator is currently moving in the bearish territory in the daily chart, indicating weakness in the counter. Considering all these technical evidences, we are expecting a sharp correction in the stock from higher levels. Hence, we advise traders to sell this stock in the range of Rs 2,300- Rs 2,315 for a target of Rs 2,140 in coming 8 - 10 trading sessions. The stop loss for this trade set up can be kept at Rs 2,390.''
