Technical Calls: Balrampur Chini, PNB and RInfra

In last few weeks, main indexes i.e Sensex and Nifty have witnessed a lot of volatility and downfall due to concerns over many issues. But in this volatility, one thing which is positive is that 10,000 mark in nifty is still in the safeside. From few days, Crude Oil has also seen some good fall which is positive for Indian market.

However, Liquidity issue was also a rising concern for investors in market. For this, RBI has chosen to buy/purchase bonds from market to inject some liquidity. According to some media reports, Government is also discussing with RBI to ease some norms for PSU banks like for Branch expansion and Advance/Loan policy to further increase Liquidity.

Overall, by looking at the current situations/environment surrounding our share market, it is possible to see some more strong support in Nifty around 10,000-10,100. In next few days, nifty may even test 10,400-10,500 range after recent developments.

Balrampur Chini

Balrampur Chini Chart

In last one month, balrampur chini has witness a good buying despite of weak market. From around Rs 70 on 1 october, share is now trading around Rs 108. For past few days, it was in a range bound movement. But on Monday, it gave a fresh breakout on technical charts.

Stock has broke its strong resistance of Rs 101–104 and is currently trading around Rs 108 means 3–4 percent up from its resistance. This is a good signal for traders.

In next few days, I think stock may test Rs 120-125 range, which is its next strong resistance. So, at current levels, one can buy this stock for a target of Rs 120-125. Keep a stoploss in this trade at around Rs 98 or around Rs 102.

PNB

PNB chart

From many days, PNB stock was trading below Rs 70 due to heavy selloff pressure in overall market. However with the recent news flow of some possible ease in norms for PSBs, all the PSU banks have seen a great buying on Monday.

Today, PNB stock has been able to close the positive trading session above Rs 70. The stock has now potential to start moving towards its next strong resistance of Rs 80. Before this level, there is no other strong resistance for stock. But as we have already seen many times that Such rally in PSU Banks last for only few days, traders will have to use a stoploss to avoid any higher risk.

Therefore, at current levels, one can buy PNB stock for the target of Rs 79-80 with a stoploss at Rs 68.

Reliance Infrastructure

RInfra Chart

After Sale of Mumbai Power transmission business to Adani, it was common to see a great buying in RInfra shares. The same happened also and we saw more than 15 percent rise in shares of company within a week. But thereafter, the move didn’t sustained and from levels of Rs 470, stock fell up to Rs 280 within a month.

However, in October, stock took a good support from its multi year support level of Rs 250. From its low of Rs 270, stock has even seen a buying of more than Rs 80, equal to almost 30 percent in the same month i.e October.

After taking a support, Reliance Infra share has formed one of the best mix of buy and sell and upward trend line. It has seen a consistent buying over last one month.

Due to higher volatility in markets also, I think taking a small risky trade in volatile stocks like Rinfra wouldn’t be a bad decision. I don’t know whether the share will sustain this consistent buying pattern for more weeks or not. But if this pattern sustained for more time, then it is possible to see levels of Rs 410–420 also in next 10-15 days in stock.

So, with a stoploss at around Rs 328-329, one can buy this stock at current levels for next 10-15 days. In this trade, you have to keep a trailing stoploss to avoid further risk and to get more gain.

In trailing stoploss, keep the stoploss around 5-6 percent down from the closing price of the previous day.

Have any question related to this post? Feel free to ask through comment box given below.


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