Initiation range: 500-505
Sun Pharma has been witnessing profit taking for the last two months, after a strong rally from roughly 310 to 560+ levels. It has reached the support zone of major moving averages on multiple time frames and they all coincide closer to 485 levels. Indications are in the favor of gradual recovery from hereon thus we advise creating fresh longs in the given range.
Sumitomo Chemical India Limited
Initiation range: 292-296
Sumichem has taken a pause after a breakout from a consolidation zone and currently hovering in a narrow range. The chart pattern combined with the positioning of the indicators is pointing towards a strong rise in the near future. Traders shouldn’t miss this opportunity to accumulate in the mentioned zone.
TVS Motor Company Limited
Initiation range: 464-468
The auto pack has been showing tremendous resilience on every dip and TVS Motor is keeping with the trend. It has rebounded sharply after a dip last week and again trading closer to the high of the calendar year. We expect the prevailing momentum to continue.
Oil & Natural Gas Corporation Limited
Recommendation: Sell October Futures
ONGC has been underperforming the index for the last several years as it’s trading in a prolonged downtrend. In line with the others, it also witnessed a rebound from the March lows but failed to sustain above the resistance barrier of 100 EMA on the daily chart despite multiple attempts.The recent bounce to the short-term moving average has resulted in the formation of a fresh shorting pivot on the daily chart.
Note: All stock prices are in Rs.
Disclaimer: Ajit Mishra is VP - Research at Religare Broking.