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Last Updated : Jul 08, 2020 08:41 AM IST | Source: Moneycontrol.com

Trade spotlight: Bajaj Finance, Bandhan Bank, IGL, Bosch & Ujjivan in focus

Indian markets rallied for the fifth day in a row on July 7 and swift price action was seen in stocks like Bajaj Finance, Bosch, Bandhan Bank, IGL and Ujjivan Financial Services.

 
 
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Indian markets rallied for the fifth day in a row on July 7 and swift price action was seen in stocks like Bajaj Finance, Bosch, Bandhan Bank, IGL and Ujjivan Financial Services.

We have collated expert technical views on what should investors who missed the price action should do:

Expert: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in

Close

Bajaj Finance: Buy| Target: Rs 3,740| Stop Loss: Rs 3,125

The stock rallied nearly 8 percent on July 7 and was also the top Nifty gainer. This counter appears to have registered a decisive breakout above 3,125 levels after nine days of brief consolidation.

After hitting a major low of 1,783 in last May, this counter appears to be moving in an ascending channel.

Hence, sustaining above the recent breakout point of 3,125, it should head towards the upper end of the said channel the value of which is placed at around 3,740 that also coincides with 62 percent retracement of the entire fall from February highs of 4,293.

Therefore, positional traders who want to ride the up move should put a stop below 3,125 on a closing basis and hold for a higher target of 3,740.

BOSCH:  A close above 14,000 will take it to next target of Rs 16,300

The stock rallied nearly 12 percent with strong volumes. Technically, this counter is in a multi-year downtrend after topping out in the year 2015 with a lifetime high of 27,990.

Interestingly, it appears to have registered a durable bottom with a panic low of 7,850 levels in last March.

However, as the long-term trend is down, the recent three months of appreciation, with a gain of around 75 percent, can still be considered as a counter-trend move.

Such counter-trend rallies inside the channels often perish after testing the upper boundary. Hence, there needs to be a follow-through to the big breakout seen on July 7.

This sporadic raise of the last session seems to be facing resistance at the upper end of the channel, which it carved out in 35 sessions.

Positional traders who are holding this scrip are advised to book profits if it fails to witness follow-through buying and closes above 14,000 in the next three trading sessions. In case it closes above 14,000 levels, then a bigger target towards 16,300 can be expected.

Indraprastha Gas: Exit the stock| Avoid fresh longs

The stock fell nearly 6 percent on July 7 and data suggests that the counter appears to have registered a consolidation breakdown, signalling the end of a pull-back move it witnessed from the March lows of 284 levels to a high of 520.

Its wide consolidation range of 54 sessions between the range of Rs 430–500 is projecting a target close to 360. Hence, traders and investors should immediately exit, avoid considering fresh longs.

Ujjivan Financials: Buy| Target Rs 290-300| Stop Loss: Rs 240

Shares of Ujjivan rallied nearly 8 percent. This counter is witnessing a steady uptrend with brief consolidation in between the rallies.

Unless it closes below 242, traders should retain an optimistic stance and look for a target between 290 and 300.

Fresh buying can be considered now and on dips, if any, between 250 and 245 levels with a stop below 240.

Bandhan Bank: Buy| Target: Rs 447| Stop Loss: Rs 362

Bandhan Bank rallied more than 10 percent and data suggests the counter appears to have resumed its uptrend as it witnessed a breakout from its minor congestion zone of nine sessions on massive volumes.

As long as it sustains above 362 levels, positional traders should retain an optimistic stance and look for a bigger target of 447.

However, investors should consider booking profits if the stock fails to sustain above 402 in the next three sessions.

Fresh buyers can adopt a two-pronged strategy of buying now and adding further on dips, if any, into the 377–370 zone with a stop below 362 on a closing basis.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Jul 8, 2020 08:41 am
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