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Last Updated : Aug 29, 2019 11:43 AM IST | Source: Moneycontrol.com

Tech Check: Avoid going short on YES Bank; Godfrey Phillips good buy on dip

We have collated a list of stocks which remained in focus on Wednesday because of their price action. The technical outlook is for the near to medium term.

Kshitij Anand @kshanand
 
 
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Indian market snapped its three-day winning streak and closed in the red on August 28 and the weakness continued a day later as well.

The Nifty bounced back from its 20-day moving average (DMA) on August 28 but breached the day’s low of 10,987 in the trade the next day, which does not auger well for the bulls. The next big support for the index is at 10,900-10,850.

We have collated a list of stocks that remained in focus on August 28 because of their price action. The technical outlook is for the near to medium term.

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Analyst: Romesh Tiwari, Head of Research, CapitalAim

IDBI Bank: Stock likely to see some support near Rs 24

IDBI Bank witnessed a selloff on August 28 after S&P Global placed the private lender's unsecured debt rating on 'credit watch negative'.

From a technical point, the stock has been sliding since the beginning of 2019 from the mid-60 levels to the recent low seen at around Rs 24 .

On the technical chart, it is still showing a sell with RSI at 42.85 and MACD also indicating the downtrend.

The risk-reward ratio is not favorable to go short on the stock. It has some support around Rs 24 and that will act as a make or break level for the stock.

YES Bank: Avoid shorting the stock at current levels

The private sector lender witnessed a selloff on August 28 after Moody's downgraded its credit rating with a negative outlook, citing lower-than-expected capital raising.

The stock has been falling for some time now and hit a fresh lifetime low at Rs 53.2 on August 22 . On the charts, it is weak, with RSI placed at 37.2 and negative divergence indication by MACD is not encouraging for buyers.

But, with STOCHRSI(14) is indicating it to be in the oversold zone, and the high volatility witnessed in the recent past makes it a risky stock to short at these levels. I would suggest short-term traders to avoid this for now.

Godfrey Phillips: Good buy on dips stock with a target of Rs 1,170

Godfrey Phillips rallied after media reports suggested that Philip Morris International and Altria may merge once again.

In terms of technical structure, RSI (14) is at 69.698 and MACD at around 64 indicates more upside . We have seen a sharp rise in the stock from sub-700 levels at the start of August to Rs 1,050 levels that suggest good momentum in the stock.

I will advise traders to buy it on a dip, around Rs 920-930 levels, with a stop loss at Rs 850 and a target of Rs 1,170 in the short term.

Tata Global Beverages: Rally to continue after fitting 52-week high

The stock hit its fresh 52-weeks high at Rs 281.30 on August 28 and if it closes above this level August 29, it could further move towards Rs 295-300 levels, where there is some resistance.

On the charts, RSI(14) at 63.619 and positive divergence on MACD are suggesting that upward movement is likely to continue.

I advise traders to buy the stock on dip around Rs 250, with a stop loss of Rs 235 and a target of Rs 290 in the short term.

Apollo Hospitals: Wait for dips towards Rs 1,400 before going long

Apollo Hospitals hit a fresh 52-week high and is moving with strong momentum. If the stock sustains above Rs 1,430 for the next couple of sessions on a closing basis, it can further move 10 percent higher .

On the charts, the trend remains bullish but is now trading near the overbought zone. I will wait for some consolidation at lower levels and suggest traders to buy on dips around Rs 1,400, with a stop loss at Rs 1,340 and a target of Rs 1,600 in the short to medium term.

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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First Published on Aug 29, 2019 11:43 am
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