Rajesh Bhosale, Technical Analyst at Angel Broking has recommended trading strategies on Rajesh Bhosale on how to trade in Apollo Tyres, Bajaj Auto and Berger Paints. He gave following rationale for technical strategies:
1.Apollo Tyres
View-Bullish
Last Close-Rs. 245.70
''A lot of tyre stocks have been lively since the last few sessions and the sector as a whole could perform well. On the daily chart, stock prices of Apollo Tyre after trading in a falling wedge pattern for last three months have given a bullish breakout by closing above the higher range of the pattern. The said breakout is witnessed with above average volume and with a bullish candle. In addition, trend analysis on RSI indicates a bullish reversal with a formation of higher top higher bottom seen in the oscillator. Looking at all the above scenario we sense a strong upside in the counter in the near term. Thus, we recommend buying this stock at current levels for a target of Rs 270 over the next 5-10 sessions. The stop loss should be fixed at Rs 234.''
2. Bajaj Auto
View-Bullish
Last Close-Rs. 3300.25
''The stock prices have given a rare bullish pattern breakout known as ‘Diamond’ on the daily chart. The said breakout is witnessed after a strong consolidation of over two months. On the higher time frame weekly chart the trend remains bullish with prices continuously moving in a higher top higher bottom price formation. In addition, volume analysis indicates accumulation in the stock as volume during correction is comparatively low to those seen during the rally. Thus, we recommend buying this stock at current levels for a target of Rs 3420 over the next 5-10 sessions. The stop loss should be fixed at Rs 3240.''
3. Berger Paints
View-Bearish
Last Close-Rs. 247.70
''On the daily chart, stock prices have broken below the support levels of advancing line which acted as support for four times in last one year. The said breakdown in short term resembles a bearish flag pattern and is witnessed with a black body marubuzo candle. In addition, we are witnessing a bearish crossover between 20DSMA and 50DSMA which is a fresh sell signal. Moreover, momentum oscillator i.e. RSI is heading southwards well below the 40 mark; indicating further weakness in the near term. Thus, we recommend selling this stock at current levels for a target of Rs 233 over the next 5-10 sessions. The stop loss should be fixed at Rs 254.''
Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.
