Ruchit Jain, Technical Analyst at Angel Broking has recommended trading strategies on Ruchit Jain on how to trade in M&M Finance, Union Bank and Tata Global. He gave following rationale for technical strategies:
1. M&M Finance
View-Bullish
Last Close-Rs. 354.45
''This stock had recently given a breakout from a falling trendline resistance and moved higher with good volumes. In last few trading sessions, the prices have retraced some of those gains and are currently trading around the 38.2% retracement support of the recent upmove. The retracement support also co-incides with the previous resistance, which should now act as a support according to the role reversal technique of trendlines. Considering the above technical setup, there is higher probability of the stock resuming the uptrend in near term. Hence, we advise traders to buy this stock around current levels for a target of Rs 385 over the next 14-21 sessions. The stop loss should be fixed at Rs 339.''
2. Union Bank
View- Bullish
Last Close-Rs. 151.55
''Along with other PSU banking stocks, Union Bank too has corrected sharply during the month of May. However, post the recent correction, the prices are consoldating near its long term support of '200 SMA' on the daily chart, which also coincides with the '89 EMA' and the '200 SMA' on the weekly chart. Also, since the month of March 2017, the price range of Rs 147-150 has acted as a strong support during corrective moves. The 'Stochastic' oscillator, which measures the stock momentum, has given a positive crossover from the oversold territory. Considering the above mentioned technical evidences; we are expecting a pullback move in the stock in near term. Hence, we advise traders to buy this stock at current level for a target of Rs 165 over the next 14-21 sessions. The stop loss should be fixed at Rs 146.''
3. Tata Global
View-Bullish
Last Close-Rs. 156.85
''Post a corrective phase within an uptrend, the stock has recently reverted higher and has resumed its higher degree uptrend. The recent upmove has also been supported with increasing volumes which is a positive sign. Also, the moving averages are placed positively, indicating higher probability of a continuation of the uptrend. Hence, we advise traders to buy this stock at current levels for a target of Rs 170 over the next 14-21 sessions. The stop loss should be fixed at Rs 151.''
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