Stock-trading strategies for the next 5-21 trading sessions by expert traders
If the Nifty50 manages to continue with the positive momentum in the forthcoming week, it could reach the next resistance zone at 8,780 – 8,830 (monthly ‘Super Trend’ resistance around 8,830). So, traders with long positions should now trail their stop loss below 8,517 as a fall from this support could lead to a short-term corrective move on the index. Nifty is likely to remain volatile but a lot of individual stocks are showing potential to outperform.
Intraday Tips Sell Stock
(i) Cipla: Sell | Stop loss: Rs 528| Target price: Rs 500| Duration: 5-10 sessions
Cipla has been struggling for last three weeks to cross the Rs 540 mark on a sustainable basis. Cipla’s level coincides with the ‘Super Trend’ indicator on the weekly chart and hence it is a strong hurdle. Cipla has closed below the daily ’89 EMA’ as well as the ‘Parabolic SAR’ indicator. This was a strong support in the recent past. Also, Cipla’s ‘RSI-Smoothened’ oscillator has slipped below the 70 mark, indicating possibility of a further correction in the near term. Traders should sell Cipla stock at current levels and on a bounce up to Rs.519 for a target of Rs.500 in next 5 – 10 sessions. The stop loss for the trade is Rs.528.
(ii) Ashok Leyland: Sell | Stop loss: Rs 91; Target price: Rs 75| Duration: 5 sessions:
Ashok Leyland is in a strong negative trend as it is trading below its both short and medium term moving averages of 10 and 50-day period. After the recent correction, the stock has given a short-term pullback. Support for Ashok Leyland is placed at Rs 85.50. Ashok Leyland stock is expected to continue its downtrend if it breaks below the same level. Traders can initiate a short position in Ashok Leyland for the target of Rs 75 and a stop loss of Rs 91.
Intraday Tips Buy Stock
(i) IFCI: Buy | Stop loss: Rs 24.90; Target price: Rs 30.5| Duration: 2 months:
IFCI has given a rally in the last six months and confirmed a ‘Higher Top Higher Bottom’ formation on the weekly chart. The stock has retraced its earlier up move and taken support around the daily ’89 EMA’ level of 26.20. There was a formation of ‘Bullish Hammer’ on the daily chart which suggests strong up supports. The recent correction is a pull back. Traders can buy IFCI on a correction up to Rs.26 for a target of Rs.30.50 in next 2 months. The stop loss is Rs.24.90.
(ii) Hindustan Copper: Buy | Stop Loss: Rs 61; Target price: Rs 68| Duration: 5 sessions:
The Hindustan Copper stock is on an uptrend on its daily chart and is trading above its both short and medium term moving averages of 10 and 50-day period, indicating a positive trend. The stock entered into a consolidation zone. On its daily chart, a bullish flag pattern is appearing which indicates that the upside movement is likely. If the stock manages to cross its crucial resistance level of Rs 63 the upside momentum remains intact. Traders can buy the stock with a target of Rs 68, and a stop loss of Rs 61.
(iii) Cairn India: Buy | Stop loss: Rs 184; Target price: Rs 215| Duration: 5 sessions:
Cairn India is resuming its mid-term uptrend after a short term pullback as seen on the charts. A strong support zone is visible on the chart around Rs 185-188 levels. The Cairn India stock bounced back from its support and is now in the process of completion of a bullish continuation pattern. Cairn India is expected to show upside momentum further. Traders can buy the stock with a stop loss of Rs 184 and a target of Rs 198 or more.
(iv) Vedanta: Buy | Stop loss: Rs 164; Target price: Rs 180| Duration: 5 sessions:
Vedanta is consolidating below its resistance level of around Rs 170. The medium term trend for Vedanta is extremely bullish as it is consistently trading above the 50-period moving average. Vedanta’s momentum indicators are in favour of further up move and a breakout above the level of Rs 170 could fuel further momentum in the stock. The stock can be bought for a target of Rs 180 with a stop loss of Rs 164.
(v) State Bank of India: Buy | Stop Loss: Rs 233; Target price: Rs 265| Duration: 5 sessions:
State Bank of India is in a strong uptrend on its daily chart. It has given a breakout from its short term consolidation. The State Bank of India stock is nicely poised for further up move once it starts sustaining this level of Rs 240-245. The stock is trading above its both short and medium term moving averages of 10 and 50-days period. Traders can initiate long positions for the next possible target of Rs 265 and keep a stop loss of Rs 233.