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Trading Strategies: Appolo Tyres, BPCL and REC

Mudit Goyal/New Delhi 20 Dec 12 | 08:29 AM

Nifty
Last close: 5930


It was another day for the markets to trade positive throughout the sessions on back of strong global cues and domestic, banking amendment act lifted the markets sentiments. Most buying was witnessed in private sectors banks like Federal bank; Karnataka bank and Dhanlaxmi bank gained 3-6 % on Wednesday trade. As per technical charts, Nifty showed a decent upside rally from 5640-5900 and gave a healthy correction upto 5820 which leads to form the “Bull Flag" pattern on daily charts. For confirmation, index gave the breakout of same on Wednesday trade which indicates that market is ready to give further upside rally upto 6100 for near term.

APOLLOTYRE (LONG)
Last close: Rs 88.75
Target: Rs 92-93


Stock is forming the “Inverted Head and Shoulder" pattern on daily charts which is considered to be bullish. There is no as such pattern breakout but the movement from past few days suggests that there will be a strong spurt for near term. Stock is comfortably trading above its 200EMA on daily charts which also given positive outlook. One can consider buy for the upside target of 92-93 with SL of 86.50

BPCL (LONG)
Last close: Rs 357.65
Target: Rs 365-370


Stock found support around 310 levels and started moving higher with strong buying force. After testing 365 levels, stock witnessed a decent correction to form the “Bull Flag" pattern on daily charts. For confirmation, stock has given the breakout of same on last traded day with rising volume. So one can consider buy for the upside target of 365-370 with SL of 351.

LICHSGFIN (LONG)
Last close: Rs 287.55
Target: Rs 294-297


Stock was continued to trade in the range of 230-285 levels from starting of this calendar year. On Wednesday, stock has given the breakout of consolidation with average volume so we anticipate the buying momentum can continue for coming days which suggest the upside target of 294-297 with SL of 284.

RECLTD (LONG)
Last close: Rs 248.10
Target: Rs 253-256


Stock was formed the “Ascending Triangle" pattern on weekly charts which took around seven months to form so the potential of rise is quite strong. For Confirmation, stock has given the breakout of same during this week and still manages to trade above the same. Buy this stock for the upside target of 253-256 with SL of 245.

SINTEX (LONG)
Last close: Rs 68.90
Target: Rs 71-73


Stock has formed the “Inverted Head and Shoulder" formation on daily charts which is considered to be bullish. On Wednesday, stock went up by over 4% and got the neckline breakout of pattern with huge volume. So one can initiate long for the upside target of 71-73 with SL of 67.
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Aurhor is technical analyst with SMC Global Securities

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Comments

    20 Dec 12 at 12:07 PM
By: CHANDU CHARTIST

REC IS PREPARE FOR BIG JUMP WILL CROSS 425 WITHIN 8-9 WEEK



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