Published May 02, 2019
The market showed a flat development on Tuesday and Nifty 50 (NIFTY) ended the day at 11748 points (-0.06 per cent). Overall the month of April showed a gain of 1.1 %. Needless to say why the market is hovering around its all time high levels. Clearly it is eagerly waiting for more clues from the election results expected to be out in three weeks. Till then fingers crossed.
We have managed to find good trading opportunities for you in the short to medium term. We went through the Top 50 list of stocks that is automatically updated every day based on the score that Investtech's algorithms allocate to every NSE listed stock. This is based on various factors like position of the stock with respect to the underlying trend, volume balance indicator, nearness of price to support and resistance and finally any price formations or breakouts. The score varies between +100 and -100 points. Out of all stocks, those that scores the highest are chosen in Top 50 'positive' and those with the most negative score get placed in Top 50 'negative'. Today we have analysed three positive stocks.
Bandhan Bank Ltd (BANDHANBNK.NS) Close: 599.45
Bandhan Bank Ltd was listed on the National Stock Exchange in March last year, and has seen almost all kinds of price behaviours since then. Currently the stock is inside a rising trend channel in the medium term chart. It has given a buy signal from price breakout through the resistance at 570 rupees. A double bottom formation is now established and the stock is expected to rise to 746 or more. The next resistance is also around the 730 levels or 21.8 per cent higher from last close. There is support around 550 and 523 rupees in the short term.
Positive volume balance and strong momentum support the rising stock price. Bandhan Bank Ltd. is overall assessed as technically positive in the short to medium term.
The stock is volatile with an average rate of around 23 per cent on a monthly basis.
Recommendation one to six months: Positive
Aurobindo Pharma Limited is in a rising trend channel in the medium term. This signals increasing optimism among investors and indicates continued rise. The stock has given a buy signal from a rectangle formation by breaching through the resistance at 796 rupees both in the medium and long term. Further rise to 891 or more is signalled. There is support around 790-777 rupees.
The price breakout has been supported by a spike in volume, which is a positive sign. The stock is currently testing the resistance at rupee 820. This may give a negative reaction in the short term. However, given its position and underlying strength in short and medium term charts, the stock is considered a positive candidate.
Recommendation one to six months: Positive
L&T Technology Services Limited is in a rising trend channel both in the medium and long term. This shows that investors over time have bought the stock at higher prices and indicates good development for the company. The stock has given a price breakout from a rectangle formation and is above the resistance at 1720 rupees. Further rise to 2026 or more is signalled. The stock may find resistance at its earlier resistance at 1762, hence one must be cautious around that level. In case of any reaction on the downside, there is support around 1707 and 1620 rupees.
The short term momentum is very strong as the RSI value is above 70. This indicates that lately the investors have been optimistic about the stock. This is uplifting for the stock's near term future.
Recommendation one to six months: Positive
The analyses are based on closing price as per April 30, 2019. Maintaining proper stop loss is always recommended.
Investtech ei takaa analyysien tarkkuutta tai kattavuutta. Kaikkien analyysien tuottamien neuvojen ja signaalien käyttäminen on täysin käyttäjän vastuulla. Investtech ei vastaa mistään tappioista, jotka saattavat syntyä Investtechin analyysien käytön seurauksena. Mahdollisten eturistiriitojen yksityiskohdat mainitaan aina sijoitusneuvon yhteydessä. Lisätietoja Investtechin analyyseistä löytyy täältä disclaimer.
Investtech ei takaa analyysien tarkkuutta tai kattavuutta. Kaikkien analyysien tuottamien neuvojen ja signaalien käyttäminen on täysin käyttäjän vastuulla. Investtech ei vastaa mistään tappioista, jotka saattavat syntyä Investtechin analyysien käytön seurauksena. Mahdollisten eturistiriitojen yksityiskohdat mainitaan aina sijoitusneuvon yhteydessä. Lisätietoja Investtechin analyyseistä löytyy täältä disclaimer.