Technical calls by Religare Broking: Buy Hindalco Industries, Siemens

Weekly Technical Recommendations by Religare Broking Ltd.

Buy Hindalco Industries Limited

Last Close: Rs 199.10
 

Initiation range: Rs 196-198
 

Target: Rs 210
 

Stop loss: Rs 192
 

HINDALCO has been gradually inching higher for the last five months and formed an ascending triangle pattern (which act as reversal pattern) too. It’s currently trading on the verge of breakout from the same. The neckline (breakout) area of the pattern coincides with the resistance barrier of 100 EMA on the weekly chart so we may see sharp surge above that zone. We advise traders to use this opportunity and initiate fresh longs as per the levels.   

Buy Siemens Limited

Last Close: Rs 1,464.75
 

Initiation range: Rs 1,465-1475

Target: Rs 1,570
 

Stop loss: Rs 1,430
 

SIEMENS has retraced considerably from its record high and reached closer to the support zone of medium term moving average (100 EMA) on the daily chart. Considering its chart pattern, we expect marginal consolidation, followed by steady rebound ahead. We advise accumulating fresh longs in the mentioned zone.

Sell December Futures of Bharat Forge Limited

Last Close: Rs 442.35

Initiation range: Rs 444-448

Target: Rs 425

Stop loss: Rs 455

BHARATFORG has been witnessing correction for the last one year or so. It has failed twice in attempt to surpass the resistance barrier of 200 EMA on the daily chart of late and gradually inching lower. The chart structure is now pointing towards gradual fall. Thus, we suggest traders to use any uptick to go short in the given range.

Sell December Futures of Canara Bank

Last Close: Rs 212.10

Initiation range: Rs 215-217

Target: Rs 204

Stop loss: Rs 222

In line with the other PSU banking counters, CANBK has also witnessed decent recovery of late but failed to breach its resistance hurdle of 200 EMA on the daily chart and gradually drifting lower. Considering its chart pattern and overall downtrend, we expect a fresh decline ahead. We advise initiating fresh shorts as per the levels.

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