Buy Voltas, JSPL, Aban Offshore, Apollo Tyres: Kunal Bothra

In CNBC-TV18's popular show Bull's Eye, Kunal Bothra of LKP shares his trading strategies for the day.

One may buy Voltas with a price target of Rs 99 and stoploss of Rs 91. The stock on the weekly chart is forming higher high and high low kind of a formation. Volumes have been attractive, the relative strength index (RSI) from which we realised momentum indicator is moving from an oversold territory and it is showing first glimpse of forming a bullish divergence happening which is a good sign for the stock. It is trading above 200 day moving average which is a healthy sign for a niche stock and there is lot of potential for the stock. One may buy Jindal Steel & Power (JSPL) with a price target of Rs 264 and stoploss of Rs 250. The stock for the last one-two months remained in that consolidation zone and it remained in the territory of Rs 250-260-262 but yesterday it showed those first glimpse of a breakout happening, the stock was trading above the 50 day moving average with good volumes yesterday. So, the signs are strong for Jindal Steel and if breaks out, then the breakout could be significantly higher and faster. One may buy Aban Offshore with a price target of Rs 318 and stoploss of Rs 290. Yesterday with strong movement which happened around 18-18.5 percent, the stock closed above 200 day moving average, which it had failed to close for more than six-eight months now. So, it was a good sign, good volumes backing this strong price movement which is supportive of the kind of indication of short-term trend could lie. My target is Rs 318, which I believe with more buying coming across in this sector and especially in the stock, one could achieve in a day or two. One may buy Apollo Tyres with a price target of Rs 83 and stoploss of Rs 77. However, for the last one-two months it has been consolidating and forming a rising wedge kind of a formation. The indications for rising wedge formation are not that great but yesterday with the kind of move which happened backed with good volumes, it once again managed to cross 200 day moving average. So, it is nullifying negative formation and breaking out on the upside which is a good time because a lot of shorts would get trapped in this kind of a formation.