6 Stocks to Watch: Week of Sep 20th, 2021
Many RSI bearish divergences, a correction is very close..
Havells India (NSE: HAVELLS)
Closing price on Sep 17: ₹1471.90
What I see:
A strong up-move followed by a few days of consolidation on the daily chart. The hourly chart shows high volumes in the last three trading hours on Friday, similar to the levels during the previous run.
The futures open-interest is also indicating an up-move.
My buy would be at 1470-1480, or if there is a rebound from 1450 (in case the stock falls). There will certainly be some resistance at 1500, but a break above 1500 could show a 5-6% rise. Stop in either case would be at 1445.
Tata Investment Corporation (NSE: TATAINVEST)
Closing price on Sep 17: ₹1301.55
What I see:
An attempt to break 1300 seven times, and with a strong closing on Sep 17.
Forming an ascending triangle with the 400 EMA as a strong support at the hourly time frame.
My buy would be above 1310, with a decisive break at the 15-minute time-frame, or a if there is a reversal from 1250-1260 in case of a fall. My stop would be placed according to a favourable risk (1.5%):reward (4-6%) ratio.
Century Textile and Industries Ltd. (NSE: CENTURYTEX)
Closing price on Sep 17: ₹850
What I see:
Back into the upward move after a consolidation/pull back from the recent run-up to 880. The price is also sort of following an upward trend line.
It took support from the previous resistance, following Dow’s Theory.
The volume on Sep 17 looks healthy.
My buy would be at 850-860, definitely with a decisive break above 860, with a stop according to the price levels. I wouldn’t be surprised if it makes a new high (maybe 900, 4-5% from current levels). One needs to be cautious of the ~880 resistance.
Kirloskar Industries (NSE: KIRLOSIND)
Closing price on Sep 17: ₹1686.25
What I see:
Forming a pattern very similar to the cup-and-handle-pattern.
Took support from the previous support at ~1640, but is facing resistance from 1700-1710. 1700-1750 has been a strong resistance zone previously.
200EMA is about to cross-over the 400EMA at the hourly time frame.
My buy would be after a decisive breakout above 1700, with a stop just under 1690, or depending on the price levels. My target would be open.
Ambika Cotton Mills Ltd. (NSE: AMBIKCO)
Closing price on Sep 17: ₹1603.75
What I see:
1600 is a strong recent support and the closing price is just above 1600, and is following the trendline.
Sell volumes are not that high.
The 200 EMA at the hourly time frame is a strong support since about a month.
My buy would be at 1615 with a decisive close above the 15 minute 200 EMA, and a stop just under the 15 minute 400 EMA. Target 1675-1680 or maybe 1700 if the price levels allow.
Kirloskar Oil Engines Ltd. (NSE: KIRLOSENG)
Closing price on Sep 17: ₹213.05
What I see:
A consolidation after a down-move, and a decent RSI bullish divergence.
Ended Sep 17 on a strong note, with high volumes and price movement.
My buy would be at 205-212, with a very tight stop at 1-1.5% depending on levels. I would add at 219-221, if there is a strong closing at the 15 minute time frame above 219 (200 EMA at the hourly time frame). My targets would remain open, but medium term targets are 260-270.
Other stocks to watch: BLUEDART, NOCIL, DEEPAKNTR, EICHER, HDFCBANK, MINDAIND, and RADICO.
Disclaimer: I am not SEBI registered or a formally trained trader/investor. These are my personal views which I may or may not follow through with. The content is not intended to be as buy or sell calls and is just for educational/informative purposes. Please consult with a SEBI registered financial advisor before making any trades or entering the stock market.