Buy Kotak Bank, Arvind; sell GMR Infra fut: Manav Chopra

Written By Unknown on Senin, 20 Oktober 2014 | 14.02

Manav Chopra of Nirmal Bang is of the view that one may sell GMR Infrastructure futures with a target of Rs 18 and advises buying Rural Electrification Corporation with a target of Rs 275.

In CNBC-TV18's popular show Bull's Eye, Manav Chopra of Nirmal Bang shares his trading strategies for the day.

One can buy Kotak Mahindra Bank . The stock has been an outperformer from banking space and has overall being in a very good uptrend forming a series of higher highs and lows. The stock, on Friday has found a strong reversal pattern on the intraday charts, which suggests that the prices would see a short-term rally in the near-term perspective. The overall momentum indicators are still in a strong buy mode and at the current levels, there is limited downside, which suggests that the stock should be bought at the current levels.

One can buy  Arvind . The stock recently has observed a very sharp decline from its recent highs and the prices have entered into the oversold zone. On the intraday charts, the prices are showing some sort of a divergence pattern, which hints for a near-term, short-term rise as the prices have also managed to close above short-term moving averages. At the current levels, the stock has strong support around the levels of Rs 270.

One can buy Rural Electrification Corporation  (REC). The prices on the weekly chart has given a bullish breakout as the prices have managed to sustain and close above the crucial levels of Rs 260 with volume confirmation and the candlestick patterns. We recommend a buy in the stock with a stoploss of Rs 252, for an upside target of Rs 275.

One can sell GMR Infrastructure futures . The stock has breached a falling trendline drawn from its recent highs which has confirmed a short-term trend reversal signal. The prices have also managed to close below its important moving averages. With a rise in volumes, we expect that the stock would face strong resistance around the levels of Rs 21.50 to Rs 21.80 on the upside. We recommend a sell with a stoploss of Rs 22 for a downside target of Rs 18.


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