Top 2 Sectoral Stock Picks with ‘Sell’ signal on Charts No ratings yet.

Swing Trading

Date Posted-11/12/2018

(1) Sun Pharma:

We have been maintaining a ‘Bearish’ view on this stock since it formed a Head and Shoulders Pattern in Oct-Nov series.

Although the stock has fallen a good 25-30% since then, it is still not showing any signs of recovery. The selling pressure in the stock is still measurable and bears are clearly the winner in this counter. It is trading at new 52 weeks lows and weekly and Daily charts displays a ‘Break away ‘ gap which also indicates a change in price range. The stock is also showing a ‘death cross’ and a bearish cross of 10 and 20 EMA indicating the negative sentiment. Short term traders shall focus on shorting the stock. Fresh shorts/sell may be initiated below the immediate support levels  of 397/-.

Technical pattern: Break Away Gap

Action
Trigger Price
Stop Loss
Target 1
Target 2
SELL <397 406 389 380

(2) Reliance Capital:

The stock made a high on September at 487.70 and since then there has been a strong sell off in the counter. The volumes supporting the fall is huge and there has been a significant shift in underlying momentum.  Momentum oscillator, RSI is also continuously trading in the overbought zone, which also indicates persisting weakness in the counter. The immediate support for the stock stands at 199.50 and any break below this level may again trigger a fresh panic in the counter.

Technical pattern: Weak RSI

Action
Trigger Price
Stop Loss
Target 1
Target 2
SELL <199.50 205 190 182

*The analysis is based on closing price as per December 10, 2018 and Trading levels mentioned in the above post are valid for next 30 trading sessions

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Author: Traders' Chowk

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