Weekly Trading Guide: 3 Technical Stock Chart Analysis By Motilal Oswal

The technical & derivatives team, broking & distribution, Motilal Oswal Financial Services Ltd has suggested 3 technical stocks to buy. Investors and market observers should be informed that Sun Pharma, NTPC, and City Union Bank have been given a buy recommendation by the Motilal Oswal team for the current week.As a result, the technical stock chart patterns with entry price, stop-loss, and target price have been outlined below.

Sun Pharmaceutical Industries

BUY SUNPHARMA AT CMP of Rs 1179, STOP-LOSS: Rs 1140, TARGET: Rs 1280

Sun Pharma gave a consolidation breakout on weekly scale after fifteen weeks and formed a strong Bullish Marubozu candle. On daily scale the stock gave range breakout and retested the same with noticeable volumes. It is trading above its short-term moving averages and indicator (RSI) also moving northward on daily scale which suggests momentum to continue in coming sessions. Good buying interest is seen entire Pharma space and stock likely to outperform. Thus looking at the overall chart set up we recommend to buy the stock with stop loss below 1140 levels on closing basis for a new upside target towards 1280 zones.

City Union Bank

BUY CITY UNION BANK AT A CMP of Rs 142, STOP-LOSS: Rs 135, TARGET: Rs 158

City Union Bank has given a channel breakout on weekly scale after thirty six weeks and formed a bullish candle. On daily scale the stock gave range breakout and holding its gains. The momentum indicator Relative Strength Index (RSI) is positively placed and supports are gradually shifting higher. The stock is holding well above its 200 DEMA and managed to close above its immediate hurdle of 140 zones. Thus looking at the overall chart structure risk reward ratio is quite favorable and we are recommending to buy the stock with keeping stop loss below 135 levels on a closing basis for a target towards 158 zones.

NTPC

BUY NTPC AT CMP of Rs 243, STOP-LOSS: Rs 234, TARGET: Rs 260

NTPC is trading near lifetime high territory and negated the formation of lower highs - lower lows on weekly scale after two weeks. On daily scale the stock gave a falling supply trend line breakout with a strong bullish candle. It is holding well above its 50 DEMA from the past many sessions and base of the stock is shifting higher. Strong buying is visible across CPSE Index and stock is likely to scale new record highs. Thus looking at the overall chart structure recommending to buy the stock while keeping stop loss below 234 levels on a closing basis for a new target towards 260 zones.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.