SBI Life, Grasim Industries and Gujarat Gas can be good short-term trading bets with a 1-2 month view, said analysts. The three stocks have give a breakout and analysts said momentum is positive on the three counters.
SBI Life | Buy at Rs 1,280-1,285 | Target Rs 1,350 | Stop loss Rs 1,260
The stock price has broken out from a symmetrical triangle at 1274-1275. Following a breakout out from the price pattern, the 50-day MA crossed above the 100-day MA which confirmed the bullishness in the stock. The price move has been accompanied by an increase in volumes which are higher than the 20-day average, confirming the participation of volumes in the price move. The Relative Strength Index (RSI) is heading towards the overbought zone; this shows the internal strength of the up move staying intact. Thus, current levels are attractive to buy with a favorable risk-reward ratio.
Foram Chheda, CMT is a Technical Research Analyst and Founder of ChartAnalytics.co.in
Grasim Industries | Buy at Rs Rs 1,800-1,810 | Target Rs 1,960-2,010 | Stop loss Rs 1,710
Grasim closed at Rs 1,819.65 December 2. It made a 52-week low at Rs 1,276.60 on June 17 and a 52-week high of Rs. 2919.80 on January 18. The 200-day Exponential Moving Average (DEMA) on the daily chart is currently at Rs 1,621.65. The short term, medium term and long term bias are looking positive for the stock as it is trading in higher high-low on chart, which are bullish in nature. Apart from this, stock is forming an тАЬInverse Head and ShoulderтАЭ pattern on weekly chart, and has given the neckline breakout of pattern along with high volumes, so further upside is anticipated in the stock in near term. Therefore, one can buy it in the range of Rs 1,800-1,810 levels for the upside target of Rs1,960-2,010 levels with stop loss placed below Rs 1,710 level. The time horizon is 1-2 months.
SMC Global Securities
Gujarat Gas | Buy at Rs 505-509 | Target Rs 560-580 | Stop loss Rs 480
The stock closed at Rs 516.30 on December 2. It made a 52-week low at Rs 403.55 on June 23 and a 52-week high of Rs. 721.80 on January 14. The 200-day Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 512.50 The stock is trading in higher high-low on charts, which is bullish in nature. Apart from this, stock has formed a тАЬContinuation TriangleтАЭ pattern on weekly chart, and has given the breakout. It also has managed to close above the same, so follow up buying is anticipated in the stock in coming days. Therefore, one can buy in the range of Rs 505-509 levels for the upside target of Rs 560-580 level with stop loss below Rs 480 level.
SMC Global Securities
