Tata Steel Ltd
Buy Tata Steel Ltd. Above 470 Target Rs. 705, Stop Loss Rs. 380 CMP 455
During the historical election rally of May 2014, we witnessed a breakout from ‘Inverse Head & Shoulder’ pattern on the weekly chart of Tata Steel above 435 level. The conjectural target of the pattern was almost 650 but the stock rallied towards 577 and is now back to where it was. Due to its dynamic fundamentals the stock has always been investors favorite and has huge potential in itself to rise again. Technically too the support of 435 is decisive since it’s the value of the neckline of H&S pattern and also its near to the ‘89 – Week EMA’ placed at 420 mark. Thus we advise investors to go long in the counter ONLY above 470 level for the upside target of 705 in the coming 9 – 12 months. The stop loss for the set up should be placed below 380 on closing basis.
Hindustan Petroleum Corporation Ltd.
Buy Hindustan Petroleum Corporation Ltd. At 450 Target Rs. 725 , Stop Loss Rs. 340 CMP 515
With the fundamental’s aspect in case of government deregulating the diesel prices earnings OMCs including Hind Petro can grow in a compounded manner. Technically, the stock has been moving north since more than a year and is in strong bull phase. Recently the stock gave a breakout above 445 level and registered another all time high of 521 which resulted in positive crossovers of momentum oscillators in long term quarterly chart. This indicates that in the longer run, in case of favorable conditions the stock has a potential to rise towards the breakout target of 700 and above.
Thus we advise investors to accumulate the stock ONLY on dips to 450 for the upside target of 725 in the coming 9 – 12 months. The stop loss for the set up should be placed below 340 on closing basis.
Bharat Heavy Electricals Ltd.
Buy Bharat Heavy Electricals Ltd. Above 233 Target Rs. 335 , Stop Loss Rs. 190 CMP 225
In the past one year the stock has travelled a huge distance from a double digit number to a high of 289 and is now in a consolidation phase. As shown in the weekly chart, recently the stock recovered sharply from the lows of 194 which was exactly the 50% Fibonacci retracement of the entire rally from 96.50 to 289.66. In addition, a sustainable move above 233 will confirm the beginning of a new impulse on the higher side. Further, a close above 270 levels on weekly basis will result in a bullish inverse H&S pattern (Line chart). Due to the above mentioned technical evidences we advise investors to go long in BHEL above 233 for the upside target of 335 in the coming 9 – 12 months. The stop loss for the trade set up should be placed below 190 on closing basis.
NTPC Ltd
Buy NTPC Ltd. 50% Above 145 OR 50% Above 166 Target Rs. 210 , Stop Loss Rs. 120 CMP 141
It is evident from the weekly chart that after a rally from the lows of 110 towards the peak of 166 Ntpc corrected sharply. Meanwhile, during this process the stock broke out from a ‘Downward Sloping Channel’ above 140 levels to meet the expected target of 185 and above. Unfortunately, profit booking forced the counter to shed most of its gain and at this juncture NTPC is back to those breakout levels. It can be seen that recently the stock rebounded from 131 level which is also the precise 61.8% Fibonacci retracement of the entire rally. Thus any positive move from here would be a sign of instigation of another leg of up move. In addition, a move above the recent peak of 166 will confirm inverse H&S on higher degree charts. Therefore we advise investors to buy partial quantity in NTPC above 145 and remaining above 166 level for the upside target of 210 in the coming 9 – 12 months. The stop loss for the trade set up should be placed below 120 on closing basis.
LIC Housing Finance Ltd.
Buy LIC Housing Finance Ltd. At 340 – 300 Target Rs. 450 , Stop Loss Rs. 120 CMP 275
The stock was trading in the band of 150 – 300 since October 2010. Recently the stock ripped off the resistance zone pegged at 300 levels and shot up to 347 levels. Now the overall projected price target according to the chart pattern is around 450 and higher levels. In addition, few day’s back we also witnessed a breakout on the daily chart which confirms a complex ‘Inverse Head & Shoulder’ pattern. Therefore due to the above mentioned technical evidences we advise investors to go long in the counter in the range of 340 – 300 for an upside target of 450 in the coming 9 – 12 months. The stop loss for the trade set up should be placed below 275 on closing basis.
Chennai Petroleum Corporation Ltd
Buy Chennai Petroleum Corporation Ltd. Above 114 Target Rs. 175 , Stop Loss Rs. 83 CMP 103
Recently the stock has confirmed ‘Higher Highs and Higher Lows’ on the monthly chart which signals change of medium to long term trend. In addition, we observed a breakout from the falling trend line on the monthly chart with sudden spikes in volumes. Now the immediate resistance for the counter is placed at 114 level. A sustainable move above the same will result in a breakout from ‘Bullish Flag’ pattern along with the positive crossovers of ‘5 & 20 months EMA’. This might result in a very strong upside in the coming months. The placement of momentum oscillators in the weekly and monthly charts depicts that the counter has been keenly waiting since long time for some fresh trigger (breakout from 114 could be the one) to show an astonishing move on the upside. Therefore we advise investors to go long in the counter above 114 for an upside target of 175 in the coming 12 – 18 months. The stop loss for the trade set up should be placed below 83 on closing basis.
Reliance Capital Ltd.
Buy Reliance Capital Ltd. At 460 – 420 Target Rs. 650 – 720, Stop Loss Rs. 350 CMP 460
In the marvelous month of May 2014, the counter added almost 100% returns in its kitty since it surged from 330 level to register an new 52 – Week high of 659. The fall after that too was sharper as profit booking at higher levels forced the stock to nose dive towards the immediate low of 432. The correction got halted near 432 mark since it was the value of 89 – EMA as shown in the chart and also the value of 61.8% Fibonacci retracement level of the entire rise from 300 – 659. Similarly the price pattern on monthly chart indicates that the corrective move seems to be over all stock is likely to resume the recent bullish impulse. Therefore we advise investors to go long in the counter between 460 – 420 levels for an upside target of 650 - 720 in the coming 6 – 9 months with a stop loss below 350 on closing basis.
Rural Electrification Corporation Ltd.
Buy Rural Electrification Corporation Ltd. At 265 – 235 Target Rs. 345 , Stop Loss Rs. 204 CMP 265
As shown in the chart, it can be concluded that after a breakout from 250 mark the stock saw significant upside towards 380 level. Later on similar to other stocks profit booking at higher levels forced RECLTD to correct sharply and retest the level of 235. Now , the support zone of 245 – 230 is of great importance for the counter as the range coincides with the values of ‘89 – Week EMA’, ‘20 – Month EMA’ and 61.8% retracement level of the entire rally from 159 to 380 levels. At this juncture, the stock is trading well above this support zone and it seems to be preparing itself for a fresh up move. Therefore we advise investors to go long in the counter between 265 – 235 levels for an upside target of 345 in the coming 9 – 12 months with a stop loss below 204 on closing basis.
Bank of India
Buy Bank of India At 260 – 190 Target Rs. 350 – 400 ,Stop Loss Rs. 165 CMP 259
Bank India pierced the primary down trend resistance line at 270 levels in the month of May 2014 which confirmed the trend reversal from down to up. Now prices have retested the same line which has turned in to the support at 230 levels. This is offering a favorable trade set up for the bulls. We expect prices to rise up from current levels and surpass the previous swing high of 357 above which stock can escalate up to 475 levels. Slide below 210 will negate our bearish view. MACD is well balanced in the buy mode and is on the verge of entering the bullish territory which will further add the fuel to bullish momentum. Therefore we advise investors to go long in the counter between 260 – 190 levels for an upside target of 350 - 400 in the coming 12– 18 months with a stop loss below 165 on closing basis.
Bharti Airtel Ltd.
Buy Bharti Airtel Ltd. At 400 – 350 Target Rs. 600 , Stop Loss Rs. 280 CMP 400
The stock after making a life time high of 560 in October 2007 entered in to a correction phase and made a low of 213 in October 2012 which is also a 61.8% retracement of previous rise. In July 2014, prices have penetrated the primary down trend line at 347. This has confirmed that prices are out from the correction phase and new impulse is likely to unfold which can pull the stock to a new life time high of 650. Momentum indicator MACD is well balanced in the buy mode and has entered the bullish zone along with the break out, double bottom chart pattern is also visible. Traders can initiate longs around 375 with 305 as stop loss. Therefore we advise investors to go long in the counter around 400 – 350 for an upside target of 600 in the coming 12 – 18 months with a stop loss below 280 on closing basis.
Wockhardt Ltd.
Buy Wockhardt Ltd. 50% Above 750 OR 50% Above 890 Target Rs. 1250 , Stop Loss Rs. 625 CMP 745
After a very long time the stock has started trading in ‘Higher Top Higher Bottom’ formation on the monthly chart which indicates sheer strength. In addition, as shown in the weekly chart recently we witnessed a ‘Cup and Handle’ breakout in the counter above 777 mark and the stock rallied till 887 level after that. Right now the stock is back to the zone of 750 and the pattern’s target was 960 and above. In addition, on the longer run a breakout from 890 level can result in a huge upside in the counter which can pull it in 4 digits. Therefore we advise investors to buy 50% positions in the counter near 740 level and add 50% more above 890 level for an upside target of 1250 in the coming 12 – 18 months with a stop loss below 625 on closing basis.
Top Picks
Buy Tata Steel Ltd. Above 470 Target Rs. 705, Stop Loss Rs. 380 CMP 455
During the historical election rally of May 2014, we witnessed a breakout from ‘Inverse Head & Shoulder’ pattern on the weekly chart of Tata Steel above 435 level. The conjectural target of the pattern was almost 650 but the stock rallied towards 577 and is now back to where it was. Due to its dynamic fundamentals the stock has always been investors favorite and has huge potential in itself to rise again. Technically too the support of 435 is decisive since it’s the value of the neckline of H&S pattern and also its near to the ‘89 – Week EMA’ placed at 420 mark. Thus we advise investors to go long in the counter ONLY above 470 level for the upside target of 705 in the coming 9 – 12 months. The stop loss for the set up should be placed below 380 on closing basis.
Hindustan Petroleum Corporation Ltd.
Buy Hindustan Petroleum Corporation Ltd. At 450 Target Rs. 725 , Stop Loss Rs. 340 CMP 515
With the fundamental’s aspect in case of government deregulating the diesel prices earnings OMCs including Hind Petro can grow in a compounded manner. Technically, the stock has been moving north since more than a year and is in strong bull phase. Recently the stock gave a breakout above 445 level and registered another all time high of 521 which resulted in positive crossovers of momentum oscillators in long term quarterly chart. This indicates that in the longer run, in case of favorable conditions the stock has a potential to rise towards the breakout target of 700 and above.
Thus we advise investors to accumulate the stock ONLY on dips to 450 for the upside target of 725 in the coming 9 – 12 months. The stop loss for the set up should be placed below 340 on closing basis.
Bharat Heavy Electricals Ltd.
Buy Bharat Heavy Electricals Ltd. Above 233 Target Rs. 335 , Stop Loss Rs. 190 CMP 225
In the past one year the stock has travelled a huge distance from a double digit number to a high of 289 and is now in a consolidation phase. As shown in the weekly chart, recently the stock recovered sharply from the lows of 194 which was exactly the 50% Fibonacci retracement of the entire rally from 96.50 to 289.66. In addition, a sustainable move above 233 will confirm the beginning of a new impulse on the higher side. Further, a close above 270 levels on weekly basis will result in a bullish inverse H&S pattern (Line chart). Due to the above mentioned technical evidences we advise investors to go long in BHEL above 233 for the upside target of 335 in the coming 9 – 12 months. The stop loss for the trade set up should be placed below 190 on closing basis.
NTPC Ltd
Buy NTPC Ltd. 50% Above 145 OR 50% Above 166 Target Rs. 210 , Stop Loss Rs. 120 CMP 141
It is evident from the weekly chart that after a rally from the lows of 110 towards the peak of 166 Ntpc corrected sharply. Meanwhile, during this process the stock broke out from a ‘Downward Sloping Channel’ above 140 levels to meet the expected target of 185 and above. Unfortunately, profit booking forced the counter to shed most of its gain and at this juncture NTPC is back to those breakout levels. It can be seen that recently the stock rebounded from 131 level which is also the precise 61.8% Fibonacci retracement of the entire rally. Thus any positive move from here would be a sign of instigation of another leg of up move. In addition, a move above the recent peak of 166 will confirm inverse H&S on higher degree charts. Therefore we advise investors to buy partial quantity in NTPC above 145 and remaining above 166 level for the upside target of 210 in the coming 9 – 12 months. The stop loss for the trade set up should be placed below 120 on closing basis.
LIC Housing Finance Ltd.
Buy LIC Housing Finance Ltd. At 340 – 300 Target Rs. 450 , Stop Loss Rs. 120 CMP 275
The stock was trading in the band of 150 – 300 since October 2010. Recently the stock ripped off the resistance zone pegged at 300 levels and shot up to 347 levels. Now the overall projected price target according to the chart pattern is around 450 and higher levels. In addition, few day’s back we also witnessed a breakout on the daily chart which confirms a complex ‘Inverse Head & Shoulder’ pattern. Therefore due to the above mentioned technical evidences we advise investors to go long in the counter in the range of 340 – 300 for an upside target of 450 in the coming 9 – 12 months. The stop loss for the trade set up should be placed below 275 on closing basis.
Chennai Petroleum Corporation Ltd
Buy Chennai Petroleum Corporation Ltd. Above 114 Target Rs. 175 , Stop Loss Rs. 83 CMP 103
Recently the stock has confirmed ‘Higher Highs and Higher Lows’ on the monthly chart which signals change of medium to long term trend. In addition, we observed a breakout from the falling trend line on the monthly chart with sudden spikes in volumes. Now the immediate resistance for the counter is placed at 114 level. A sustainable move above the same will result in a breakout from ‘Bullish Flag’ pattern along with the positive crossovers of ‘5 & 20 months EMA’. This might result in a very strong upside in the coming months. The placement of momentum oscillators in the weekly and monthly charts depicts that the counter has been keenly waiting since long time for some fresh trigger (breakout from 114 could be the one) to show an astonishing move on the upside. Therefore we advise investors to go long in the counter above 114 for an upside target of 175 in the coming 12 – 18 months. The stop loss for the trade set up should be placed below 83 on closing basis.
Reliance Capital Ltd.
Buy Reliance Capital Ltd. At 460 – 420 Target Rs. 650 – 720, Stop Loss Rs. 350 CMP 460
In the marvelous month of May 2014, the counter added almost 100% returns in its kitty since it surged from 330 level to register an new 52 – Week high of 659. The fall after that too was sharper as profit booking at higher levels forced the stock to nose dive towards the immediate low of 432. The correction got halted near 432 mark since it was the value of 89 – EMA as shown in the chart and also the value of 61.8% Fibonacci retracement level of the entire rise from 300 – 659. Similarly the price pattern on monthly chart indicates that the corrective move seems to be over all stock is likely to resume the recent bullish impulse. Therefore we advise investors to go long in the counter between 460 – 420 levels for an upside target of 650 - 720 in the coming 6 – 9 months with a stop loss below 350 on closing basis.
Rural Electrification Corporation Ltd.
Buy Rural Electrification Corporation Ltd. At 265 – 235 Target Rs. 345 , Stop Loss Rs. 204 CMP 265
As shown in the chart, it can be concluded that after a breakout from 250 mark the stock saw significant upside towards 380 level. Later on similar to other stocks profit booking at higher levels forced RECLTD to correct sharply and retest the level of 235. Now , the support zone of 245 – 230 is of great importance for the counter as the range coincides with the values of ‘89 – Week EMA’, ‘20 – Month EMA’ and 61.8% retracement level of the entire rally from 159 to 380 levels. At this juncture, the stock is trading well above this support zone and it seems to be preparing itself for a fresh up move. Therefore we advise investors to go long in the counter between 265 – 235 levels for an upside target of 345 in the coming 9 – 12 months with a stop loss below 204 on closing basis.
Bank of India
Buy Bank of India At 260 – 190 Target Rs. 350 – 400 ,Stop Loss Rs. 165 CMP 259
Bank India pierced the primary down trend resistance line at 270 levels in the month of May 2014 which confirmed the trend reversal from down to up. Now prices have retested the same line which has turned in to the support at 230 levels. This is offering a favorable trade set up for the bulls. We expect prices to rise up from current levels and surpass the previous swing high of 357 above which stock can escalate up to 475 levels. Slide below 210 will negate our bearish view. MACD is well balanced in the buy mode and is on the verge of entering the bullish territory which will further add the fuel to bullish momentum. Therefore we advise investors to go long in the counter between 260 – 190 levels for an upside target of 350 - 400 in the coming 12– 18 months with a stop loss below 165 on closing basis.
Bharti Airtel Ltd.
Buy Bharti Airtel Ltd. At 400 – 350 Target Rs. 600 , Stop Loss Rs. 280 CMP 400
The stock after making a life time high of 560 in October 2007 entered in to a correction phase and made a low of 213 in October 2012 which is also a 61.8% retracement of previous rise. In July 2014, prices have penetrated the primary down trend line at 347. This has confirmed that prices are out from the correction phase and new impulse is likely to unfold which can pull the stock to a new life time high of 650. Momentum indicator MACD is well balanced in the buy mode and has entered the bullish zone along with the break out, double bottom chart pattern is also visible. Traders can initiate longs around 375 with 305 as stop loss. Therefore we advise investors to go long in the counter around 400 – 350 for an upside target of 600 in the coming 12 – 18 months with a stop loss below 280 on closing basis.
Wockhardt Ltd.
Buy Wockhardt Ltd. 50% Above 750 OR 50% Above 890 Target Rs. 1250 , Stop Loss Rs. 625 CMP 745
After a very long time the stock has started trading in ‘Higher Top Higher Bottom’ formation on the monthly chart which indicates sheer strength. In addition, as shown in the weekly chart recently we witnessed a ‘Cup and Handle’ breakout in the counter above 777 mark and the stock rallied till 887 level after that. Right now the stock is back to the zone of 750 and the pattern’s target was 960 and above. In addition, on the longer run a breakout from 890 level can result in a huge upside in the counter which can pull it in 4 digits. Therefore we advise investors to buy 50% positions in the counter near 740 level and add 50% more above 890 level for an upside target of 1250 in the coming 12 – 18 months with a stop loss below 625 on closing basis.
Top Picks
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