Rajesh Bhosale, Technical Analyst at Angel Broking has recommended trading strategies on Rajesh Bhosale on how to trade in Motherson Sumi Systems, Tata Communications and L&T Finance Holdings (L&TFH). He gave following rationale for technical strategies:
1. Motherson Sumi Systems
View-Bearish
Last Close-Rs. 304.90
''The stock prices of MOTHERSUMI are in a downtrend with prices moving in a lower top lower bottom price formation. On the daily chart, prices after holding the levels of 307 for last one month have finally broken below the support zone indicating a resumption of the downtrend. In addition, momentum oscillator continues to stay below the 30 levels indicating further weakness in the near term. Thus, we recommend selling this stock at current levels for a target of Rs 285 over the next 5-10 sessions. The stop loss should be fixed at Rs 315.''
2. Tata Communications
View-Bullish
Last Close-Rs. 637.50
''On the daily chart, we are witnessing first signs of bullish reversal with prices confirming a higher bottom at 610 levels as compared to the low made around 580 levels. Post the formation of higher bottom we are witnessing a spike in volume chart indicating accumulation in the stock. In addition, prices have closed above 20DSMA and 50DSMA indicating short to medium term bullish trend. Moreover, RSI has given fresh buy signal with its smoothened moving average. Thus, we recommend buying this stock at current levels for a target of Rs 674 over the next 5-10 sessions. The stop loss should be fixed at Rs 620.''
3. L&T Finance Holdings
View-Bearish
Last Close-Rs. 153.60
''The stock has been meandering within the boundaries of two horizontal trend lines for the last one month. On the daily chart, we are now witnessing a bearish breakdown from this range indicating weakness in near term. The said breakdown is supported with above-average volume indicating delivery selling by strong hands. In addition, prices are well above 20DMA, 50DMA, and 200DMA which indicate overall weakness in the counter. Thus, we recommend selling this stock at current levels for a target of Rs 142 over the next 5-10 sessions. The stop loss should be fixed at Rs 159.''
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.
