Sameet Chavan, technical analyst, Angel Broking gave views on the following stocks:
1. Wipro
View: Bullish
Last Close: Rs 672.45
"After the sharp rally from Rs 533 to Rs 671, the stock has taken a pause and started moving in sideways direction. The ongoing consolidation phase of last two weeks has resulted into formation of 'Pennant' pattern in daily chart. On Tuesday, we witnessed a breakout from the mentioned pattern in the daily chart. The 'RSI oscillator is also giving a 'positive reversal' in the daily chart, suggesting the resumption of momentum in the counter. Looking at the above technical evidences, we are expecting an impulse move in the stock. Thus, we advise traders to buy this stock from current level to a decline up to Rs 665 for a target of Rs 715 in coming 2-3 weeks. The stop loss for this trade set up can be kept at Rs 643."
2. Divis Lab
View: Bullish
Last Close: Rs 1773
"After a long consolidation, the stock has given a breakout from the 'Downward Sloping Channel' on the daily chart. Within the smaller degree charts, we are observing a formation of ‘Higher Top Higher Bottom’; indicates positive trend. Also, this breakout has come after taking a support at the daily '89 EMA' and hence, provides further strength to the up move. Looking at the above technical evidences and the higher degree bullish chart structure, we advise traders to buy this stock from current level to a decline up to Rs 1,760 for a target of Rs 1,900 in coming 2-3 weeks. The stop loss for this trade set up can be kept at Rs 1,715."
3. Asian Paints
View: Bullish
Last Close: Rs 838.30
"Post registering high around Rs 930, the stock has corrected and has tested its trendline support. Prices have reverted higher from its support zone and are showing signs of strength. The corrective action in last one month have relieved the overbought momentum set ups. 'RSI' have turned higher from its support zone and has given positive crossover, thus indicating positive momentum. Short term moving averages also indicate resumption of the uptrend. Considering these above technical evidences, we believe stock would continue its uptrend and thus, we, advise traders to buy this stock from current level to a correction up to Rs 827 for a target of Rs 900 in coming 2-3 weeks. The stop loss for this trade set up can be kept at Rs 795."
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