Monday, 14 August 2017

Bullish on Tata communications, bearish on EIL, says Angel Broking

markets

STOCK MARKET - Top technical calls from Sameet Chavan, Chief Analyst- Technical and Derivatives of Angel Broking:

Tata communications

View –  Bullish
Last Close –   Rs. 587.95
Recently, this stock underwent a strong corrective phase as we saw massive price erosion of more than 20% in merely two months. Now, the stock has reached its multiple historical support zone of 580 – 585. This coincides with the weekly ’89 EMA’ level and hence, can be considered as a major support in the near term. In last two sessions, the stock prices have been bouncing back from lows and have formed two narrow range candles. Considering this we expect the stock to give a bounce back rally soon. Hence, we advise traders to buy this stock at current levels and on declines at Rs.580 for a target of Rs.632 over the next 6- 8 sessions. The stop loss now should be fixed at Rs.570.

Engineers India
View –   Bearish
Last Close –   Rs. 149.60
Due to Thursday’s fall, the stock prices breached its ‘200-SMA’ support level of 152. As a result, a ‘Lower Top Lower Bottom’ structure on the daily chart has been formed, which is a negative sign for short term. The ‘RSI’ oscillator too has given a breakdown from its long term support.

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