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Shipping Corporation of India (SCI): BUY
Last Close: Rs 81.85
Stop Loss: Rs 78
Target: 88/93
Rationale: On the weekly charts, the stock has given a fresh swing breakout after breaking levels of 73. On the daily charts, stock yesterday completed and broke out of a Bullish Flag pattern, with a breakout line of 79. Keeping the longer term trend as well as the short term price pattern in play, I believe the stock can head higher from current levels.
Titan: BUY
Last Close: Rs 340.45
Stop Loss: Rs 332
Target: 350
Rationale: On the monthly charts, TITAN is forming a Bullish hammer pattern after seeing a recovery from 314 levels few weeks ago. Its nearing the 50 DMA, and if the stock breaks out of the band, then I believe that the stock can see some strong trending moves in the short term.
Bank of India: SELL
Last Close: Rs 177.10
Stop Loss: Rs 182
Target: 173
Rationale: After touching the upper end of the Bollinger Band (20,2) the stock is witnessing some correction, and with weakness in Banknifty, I think this is one of weaker stocks, as it is struggling to break the 100 DMA and 200 DMA.
Ambuja Cements: BUY
Last Close: Rs 231
Stop Loss: Rs 228
Target: 237
Rationale: The cement stocks did pretty well in yesterday’s session, and in Ambuja Cement, the modified RSI and modified MACD are showing signs of a strong breakout. Stock also closed above the mid Bollinger band, indicating a positive short term uptrend could begin for the short term.
Apollo Tyres: SELL
Last Close: Rs 195.25
Stop Loss: Rs 198
Target: 191
Rationale: A bearish engulfing pattern with higher volumes indicate that the stock could witness a short term reversal. Modified RSI and modified MACD are also indicating this recent rally in the stock could be used as a sell on rallies.
Disclaimer: We are suggesting all these stocks to our clients but there is no personal holding
Kunal Bothra is head of advisory with LKP Securities
