We’re seeing profit-taking across the board in the recent market fall and the banking pack is no different. Among the stocks, Bandhan Bank has been trading in a steady downtrend and is facing selling pressure on every rise. It has formed a short pivot after its failed attempt to sustain above the moving averages ribbon on the daily chart. We thus recommend creating fresh shorts in the given range.
ESCORTS
Recommendation: Sell July Futures
Last Close: Rs 1169.30
Initiation range: Rs 1175-1185
Target: Rs 1085
Stop loss: Rs 1235
Escorts has been trading with a corrective bias after retesting its previous record high around Rs 1468 levels in February. And, it has witnessed a fresh breakdown from a congestion range of July 20. The stock is likely to see a sharp decline in the near future. Traders shouldn’t miss this opportunity and go short in the mentioned zone.
KANSAI NEROLAC PAINTS
Recommendation: Buy
Last Close: Rs 618.20
Initiation range: Rs 615-620
Target: Rs 670
Stop loss: Rs 590
Paints stocks are showing tremendous resilience in the recent corrective phase and Kansai Nerolac is also trading firm. It has formed a strong base around Rs 590 and looks set for a rally. The recent uptick in the volumes is further adding to the confirmation. We thus advise accumulating in the given range.