3 Technical Buy Calls From Tata Steel To GFL By Aditya Gaggar of Progressive Shares

The director of Progressive Shares, Mr. Aditya Gaggar, has recommended three stocks with a buy rating. The analyst has a strong outlook for Gujarat Fluorochemicals Limited (GFL), RBL Bank, and Tata Steel's shares. This article provides a quick description of the technical analysis of the stocks, which covers the entry price, time horizon, stop-loss, and target price.

Market Outlook

"After a spectacular run-up in the past couple of days, the Index went into a consolidation mode and ended the 18th December trade marginally lower at 21,418.65. On the daily chart, it has formed an Inside Bar DOJI candlestick pattern which portrays a range bound activity can be expected and an early indication from GIFT Nifty also suggests the same.

The immediate support is placed at 21,330 while 21,500 will act as a resistance level. BankNifty more or less moved in tandem with Nifty where the downside is protected at 47,480, and on the higher side, 48,150 will be considered as a resistance," commented Aditya Gaggar.

"IDFC twins will be in the limelight as they received a nod from RBI for a merger. Due to a cut in the windfall tax on petroleum crude stocks such as ONGC, Reliance, Chennai Petro & MRPL will remain in focus. The stocks recommended from the Metal sector (SAIL & NALCO) are performing on expected lines which boosts the confidence to remain bullish on the same; even HindCopper and Jindal Steel look good on a technical front.The Pharma sector was seen regaining its lost momentum but we will wait for a clear breakout from its congestion," the director of Progressive Shares further stated.

Gujarat Fluorochemicals Limited (GFL)

Buy at CMP oi Rs 3252, target price: Rs 3888 & Rs 4525, timeframe: 6 to 9 months

Gujarat Fluorochemicals Ltd has given a breakout from a continuation pattern known as Symmetrical Triangle formation.

Long term trendline breakout was observed in the leading momentum indicator RSI.

Trend following indicator MACD has given a positive crossover while a reading of 23 in ADX indicates the presence of the strong trend.

Price breakout was confirmed with an upsurge in Volumes.

With pattern breakout, the stock has breached its 50WMA (Red Line) as well.

"We recommend a BUY on the company at current market price of Rs3252 or decline upto Rs3120 with a closing stop loss of Rs2700 for a target of Rs3888-Rs4525 with a horizon of 6-9 months," said the analyst.

RBL Bank

Buy at CMP of Rs 292, target: Rs 375 & Rs 458, time frame: 6-9 months

Consolidation of 2 years comes to an end with a Rounding Bottom Formation breakout.

Leading Momentum Indicator RSI has given a trend line breakout.

Reading of 39 in ADX indicates the presence of a strong uptrend.

Positive crossover was also witnessed in the trend-following indicator MACD.

"We recommend a BUY on the company at current market price of Rs292 or decline upto Rs266 with the closing stop loss of Rs215 for a target of Rs375-Rs458 with a horizon of 6-9 months," said Mr. Aditya Gaggar, Director of Progressive Shares.

Tata Steel

With a higher top higher bottom formation, the stock is in the primary uptrend and recently, it has given a breakout from a V-shaped pattern which was confirmed with a positive crossover in MACD. A reading of 29 in ADX is also indicating the presence of a strong underlying trend. As per the pattern breakout, the target arrives at Rs155, stated Aditya Gaggar.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.