The market is at an all-time high and if you are looking for some best technical recommendation, then Angel Broking has released a report about the Best Diwali Ttechnical Picks. Chose any or all of the stocks during the Muhurat Trading and start the new year with great optimism and new energy.
Diwali Technical Picks By Angel Broking
- Tata Motors
- Adani Transmission
- Deccan Cement
- HDFC Life
Let us describe each of the stock with the chart and share the target and stop loss with you.
1. Larson & Turbo
In the last few months, the stock has seen a consolidation phase and has underperformed the benchmark index. However, off late, it has witnessed good buying interest which can be seen from rising volumes. The stock has now given a breakout from its consolidation phase and has started forming a ‘Higher Top Higher Bottom’ structure. Therefore, it has been added to the best Diwali technical picks for Muhurat trading 2020.
The ADX oscillator on the daily chart indicates a positive trend and the rising ADX line indicates a higher probability of continuation of this trend in the near term. Looking at the above price-volume action and the placement of momentum oscillators, we expect the stock to outperform in the short term.
Hence, traders are advised to buy the stock in the range of 1030-1050 for a potential target of 1150 in the near term. The stop-loss for the trade should be placed below 995.
2. Tata Motors
Since the March lows, the stock has gradually shown recovery and it surpassed its ‘200 DMA’ in the month of August. It then consolidated within a range above its ‘200 DMA’ which just seemed a time-wise correction. After this time-wise correction, the prices have again gained momentum and have given a breakout from a falling trendline resistance too. Tata Motors is one of the best Diwali Technical Picks.
In recent history, the volumes have been good when there have been price up moves. Prices are riding on the upper ‘Bollinger Band’ which is rising and thus, indicating a continuation of the uptrend. The momentum readings too are positive placed and hence, we are expecting a swift upmove in the stock in the short
Based on the above technical evidence, traders are advised to buy the stock in the range of 147-151 for a potential target of 169 in the near term. The stop loss for the trade should be placed below 141.
3. Adani Transmission
The midcap index has finally given a breakout from a consolidation phase indicating a higher probability of midcap names showing some outperformance. This stock has recently given a breakout from a ‘Bullish Flag’ pattern which is a bullish continuation pattern.
If we measure the possible target as per the above pattern, then prices still have a good upside potential with a decent risk reward. The ‘Higher Top Higher’ Bottom structure on the weekly charts adds to our conviction and hence, short term traders should look for opportunities in such potential midcap.
Hence, traders are advised to buy the stock in the range of 317-320 for a potential target of 350-355 in the near term. The stop loss for the trade should be placed below 299.
4. Deccan Cement
The entire ‘Cement’ space has been on a roll since last couple of months. All larger names have given a mesmerizing move in this period and now some of the smaller stocks are gaining traction. ‘Deccan Cement’ has confirmed a good price-volume breakout on the daily chart last week.
The kind of extraordinary volume activity we have witnessed in the up move in the recent months indicates some bigger moves to unfold and this probable rally seems to have just begun now.
Hence, one can look to go long from the current level to a decline of around 325 for a target of Rs.418 in the coming weeks. The stop loss can be placed at Rs.297.
5. HDFC Life
Post a spectacular run from its March low of 340 to a recent high around 650 levels the prices went into consolidation or correction phase. This correction, however, got arrested around key supports and a bounce-back from there has resulted in the ‘Saucer’ pattern bullish breakout on the daily chart. HDFC Life is one best best, stable and safe stock for Diwali technical Picks.
As per the exhibit, the price structure resembles a formation of ‘Inverse Head n Shoulder’ pattern and the fresh buy crossover on the RSI smoothened supports the pre-emptive buy. Volume analysis indicates, high volumes during upmove as compared to low volumes during the down move that indicates accumulation in this counter.
Hence, we recommend a buy at current levels and on dips to 605 for a potential target of 710. The stop loss for the same can be placed below 584.
Source: Angel Broking
Abhishek is the founder of Above Stocks. He manages the News section of our site. Having learned the art of Stock Trading, he is always keen to know the latest updates in the Indian Stock Market and put it down in our news section.