Rajesh Bhosale, Technical Analyst at Angel Broking has recommended trading strategies on Rajesh Bhosale on how to trade in Balrampur Chini Mills, Ashok Leyland and Motherson Sumi Systems. He gave following rationale for technical strategies:
1. Balrampur Chini Mills
View-Bullish
Last Close-Rs. 165.30
''A lot of sugar stocks have been lively since the last few sessions and the sector as a whole could perform well. Balrampur Chini, so far, hasn't matched its peers but we are now witnessing a bullish reversal pattern known as 'Engulfing' on a strong support zone indicating that the stock could outperform. The said formation is seen with above average volume and fresh buy signal in momentum oscillator RSI with its smoothened moving average. Thus, we recommend buying this stock at current levels for a target of INR181 over the next 5-10 sessions. The stop loss should be fixed at Rs 157.''
2. Ashok Leyland
View-Bullish
Last Close-Rs. 126.45
''The stock is in uptrend continuously moving in a 'Higher Top Higher Bottom' price cycle. On the daily chart, prices after trading in a consolidation for last five trading session have broken the resistance zone confirming a bullish continuation flag pattern breakout. Prices are now trading in an uncharted territory which indicates favorable conditions where supply gets absorbed by fresh creation of demand suggesting strength in the bulls for further dynamic up move. Thus, we recommend buying this stock at current levels for a target of Rs 137 over the next 5-10 sessions. The stop loss should be fixed at Rs 121.''
3. Motherson Sumi Systems
View-Bullish
Last Close-Rs. 347.05
''On the daily chart, stock prices have given a bullish continuation pattern breakout known as 'Pennant'. The said breakout is witnessed after a strong consolidation of more than fourteen trading sessions. Prices are well above 20-50-89 DSMA which indicates overall bullishness in the counter. In addition, prices have closed above the higher range of Bollinger band suggesting strong trending up move post consolidation. Thus, we recommend buying this stock at current levels for a target of Rs 365 over the next 5-10 sessions. The stop loss should be fixed at Rs 338.''
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