Trading Strategies: Siemens, ACC, NHPC

Check out the trading strategies with Shubham Agarwal, Vice President and Senior Analyst (Technical - Equities), Motilal Oswal

Check out the trading strategies for frontline stocks.

Buy NHPC

The scrip was correcting on the long term chart with a lower top and lower bottom formation but the sequence has halted with multiple bottom in the band of 17 - 17.5. A symmetrical triangle has also been formed at the lower band which has confirmed a breakout on the upside. The odds favour direction toward the north and can be accumulated at the current levels.

We recommend buying the scrip at the CMP of 19 for a price target of 23 and a stop loss for the scrip can be placed at 17.5.

Buy Siemens

Siemens is one of the component in the CNXINFRA which is outperforming the broader market. The outperformance from Infra is expected to continue which can lead to another 10-15% of gains. Siemens is less correlated with the Nifty and with the Index witnessing a time correction, such stocks can do well.

The technical setup has turned positive after the breakout from the consolidation band of 630 – 690. A small triangular pattern was formed which provides support at the level of 674.

We recommend buying the scrip at the CMP of 704 for a price target of  760 and a stop loss can be placed at 674.

Buy ACC

Cement has been one of the top performing sector which is not ready to lose its steam. The sector has been doing well despite the direction in Nifty. Most of the cement stocks seems ready for a fresh upside which can outperform the benchmark.

Acc has reported a new all time high and this development has opened up a room for a substantial upside. The recently formed continuation pattern suggests support at 1360 and the base of breakout provide a price target of 1600.

We recommend buying the scrip in the price band of 1430-1450 for a price target of 1600 and a stop loss can be placed at 1360.

Sell JSPL

Metals have been a consistent underperformer on the medium term scale. The sector rotation chart indicates that pullbacks in the Metal space can be used as a selling opportunity.

Jindal Steel & Power formed multiple bottoms around 450 in late 2011 post which the support was taken out on the downside. After reporting a low at 320, the scrip has witnessed a short squeeze and has re-tested the important level of 450. On the daily chart a bearish engulfing pattern was developed in the same area, increasing the significance of the level.

We recommend selling the scrip at the CMP of 425 for a price target of 320 and a stop loss can be placed at 460.



The author is CMT, CFA Associate, Vice President and Senior Analyst (Technical - Equities) at Motilal Oswal Securities