 "equity trading volumes, share market")
Olectra Greentech
After a period of consolidation in the approximate range of Rs 1,600-1,700, Olectra Greentech has successfully broken out of a bearish trendline that had persisted for 3-4 months. The stock is now comfortably maintaining its position above this trendline, indicating a strong upward movement.
From an indicator perspective, the weekly stochastics have reversed near the oversold zone and have formed a bullish crossover, which is a positive sign for potential gains. Based on this analysis, we recommend that traders and investors consider taking a long position in the range of Rs 1,790-1,820.
The target for this upward move is set at Rs 2,020, with a stop-loss placed at Rs 1,690 based on a daily closing price.
Federal Bank
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After peaking near the Rs 170 mark on May 2, 2024, Federal Bank experienced a significant downturn, with a decline of approximately 13 points, equating to roughly 7-8 per cent.
However, in the subsequent two trading sessions, Federal Bank demonstrated resilience by avoiding further drops and instead consolidating within a narrow range of Rs 156-160.
Notably, in the prior trading session, there was notable buying activity observed at lower price levels, particularly from the middle Bollinger band, suggesting investor interest in purchasing the stock at these levels.
From a technical perspective, the hourly stochastics indicator has reversed from the 60 levels, indicating a potential shift in momentum, and presenting an attractive buying opportunity. Consequently, traders are advised to consider buying Federal Bank within the range of Rs 162-165, with an anticipated upside target of Rs 175.
Indian Hotels
Indian Hotels Company Ltd's stock recently experienced a period of consolidation, trading within a range of approximately Rs 560 to Rs 575. This phase of limited movement has ended as the stock successfully broke out above this range.
The stock is now consistently maintaining its position above this breakout level, suggesting a strong upward trend.
From a technical analysis perspective, the daily stochastics indicator, which measures the momentum of the stock, has reversed direction after reaching the 70 level. This reversal has resulted in a bullish crossover, where the shorter-term moving average crosses above the longer-term moving average. This is generally seen as a positive signal indicating potential for further gains.
Given these developments, it is recommended that traders and investors consider entering a long position (buying the stock) within the price range of Rs 580-585. The analysis sets a target price of Rs 620 for this upward move, suggesting a potential for profit. To manage risk, a stop-loss order should be placed at 562, meaning that if the stock closes at or below this price on any given day, the position should be sold to prevent further losses.
(Jigar S Patel is a senior manager of equity research at Anand Rathi. Views expressed are his own)
