At this juncture, the pragmatic approach would be to stay light within the range and should focus more on potential movers. Despite market remaining in a range, we have seen good trading opportunities in few individual pockets throughout the week.
NSE Scrip Code – ALEMBIC
View – Bullish
Last Close – Rs 53.80
Justification – In the week gone by, we witnessed consolidation with some negative bias in benchmark index; but lot of stocks from the broader market were on the move. ‘ALEMBIC’ was clearly one of them. In fact, in last few weeks, the stock has already given some stupendous recovery from sub-30 levels. Finally, on Friday, we witnessed a breakout from the ‘Bullish Cup and Handle’ pattern around 53 on a closing basis. Importantly, it is accompanied with humongous volumes, more than 10 times of its average daily volumes. This indicates immense participation in the counter and hence, we recommend this stock for a target of Rs 63 in the coming weeks. Traders can keep their stop losses at Rs 48
NSE Scrip Code – APOLLO HOSPITALS
View – Bullish
Last Close – Rs 1,355.30
Justification – Recently, the stock rallied from the levels of 1,047 to 1,465 and then it witnessed a price correction that got arrested around the 50 per cent retracement level of the above said rally. For the last few sessions after forming a base around the key support levels, prices have resumed the up move by forming a bullish candle stick pattern and by confirming a range breakout. The said breakout is supported by strong volumes. In addition, a bullish crossover is seen in the momentum oscillator i.e. RSIS along with its smoothened average suggesting a strong momentum up move in the near term. Looking at all the above evidence, we sense an outperformance by this counter and hence we recommend a buy at current levels for a target of Rs 1,510 over the next 14 sessions. The stop loss should be fixed at Rs 1,265.
Disclaimer: Sameet Chavan is Chief Analyst- Technical & Derivatives at Angel Broking Ltd. Views are personal.