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Top trading ideas by Ventura Securities: Buy Bajaj Electricals, Mukund

Stock calls
Bajaj Electricals

CMP: Rs 1,140

Target Price: Rs 1,400-1,700

Buy Area- (1,103-1,063)-1,031-(1,000-980)

Stop loss: 980

Bajaj Electricals started its recent up move from 474 in December, 2020 and touched a high of 859 in January, 2021. After a minor correction, it saw an aggressive buying, supported by volumes with gap-ups and reached a high of 1,124 in February, 2021. Again, it was subject to minor profit booking after which the stock made bottoms at 925 and 895. 

 
Once again, the stock started its up move and, in a straight-run, made a high of 1,168 on April 16, 2021, and closed at 1,140. This was above the previous swing highs of 1,099 and 1,124. The stock is trading above all averages, which are depicting rising trends. The 200-DMA has been continuously rising since November, 2020. The Rate of Change, Demand Index and ADX indicators are also in a positive mode. 

This trend in the stock suggests that it has the potential to test 1400-1700 levels in the coming days. If the stock corrects during the move, it can be added at (1103-1063)-1031-(1000-980), observing a Stop Loss at 890.

Star

CMP: Rs 922

Target Price: Rs 1,050-1,200

Buy Area: (881-852)-828-(805-790)

Stop loss: 780

Star started its recent up move from 595 in Nov 2020 and made a high of 898 in Dec 2020. After a minor correction down to 717, the stock saw aggressive buying to reach a high of 1000 in Jan 2021. Then some minor profit booking followed for a while and the stock made a bottom at 728 in March 2021. 

The stock once again started its up move with a big green bullish candle day and, subsequently, entered a consolidation phase for almost three months. On April 16, the stock has given Symmetrical triangle breakouts to make a high of 929.

Star is trading above all averages, which are themselves on rising trends. The 200 DMA has been continuously rising since Nov 2020 and the Rate of Change, Demand Index and ADX indicators are in a positive mode. 

Based on the trend in the stock, it appears to have the potential to test 1050-1200 levels in the days ahead. If it corrects during the move, it can be added at (881-852)—828—(805-790). Observe a Stop Loss at 780 in this trade. 

Mukand

CMP: Rs 101

Target Price: Rs 140-160

Buy Area: (95-91)-89-(87-84)

Stop loss: 77

Mukand Ltd. started its recent up move from 44 in Nov 2020 and made a high of 77 in Jan 2021. After a minor correction and consolidation phase, that prevailed for two months till 55, the stock saw aggressive buying, supported by volumes with up gaps and made a high of 99 in April 2021. 

On April 16, the stock closed above its previous high of 99 and recent volume patterns in the stock suggest continuous buying interest. The stock is trading above all averages, which themselves are in a rising trend mode. The 200 DMA has been continuously rising since Nov 2020 and the Vortex and Aroon Up/Down indicators are in a positive mode.

 
The trend in the stock suggests that the stock has the potential to test 140-160 levels in the coming days. If the stock corrects during the move, it can be added at (95-91)-89-(87-84) and a Stop Loss must be observed at 77 in the trade.

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Disclaimer: Bharat Gala is President - Technical Research at Ventura Securities.

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