Market Trading Guide: Tata Communications, UPL among 6 stock recommendations for Wednesday

On a weekly timeframe, the counter has formed a Rounding Eve pattern indicating Bullish strength. In addition, the price is trading above the Ichimoku Cloud & Long Term EMA (200). RSI trading in an upper zone, indicating that the trend is positive.


(Kunal Kamble, Sr. Technical Analyst, Bonanza Portfolio)

On the daily chart, after making an all-time high, the stock trades in a range at a higher level forming Rectangle Pattern. Currently, HDFC Banks has respected the resistance zone and a small retracement is being witnessed, which can continue near Rs 1570 levels. Long-Term EMA (200) has been respected multiple times, suggesting that the bank can take the support of the EMA. The EMA is still showing that an upward trend is likely to continue in the coming days. Volume during buying has been significant compared to selling, indicating that buyers are keen to buy the stock on a dip.

(Kunal Kamble, Sr. Technical Analyst, Bonanza Portfolio)

In the daily chart after making multiple bottoms around Rs 232 in March, the stock has witnessed some bull run to make a 52-week high of Rs 288 odd levels. Volumes were on rise as buyers were having upper hand against bears. After making high around Rs 288, the price is currently moving in the range of Rs 270-288 and once there is a breakout on a positive note we can see sharp 30-40 points move.

(Viral Chheda, Sr. Technical Analyst, SSJ Finance & Securities)

In the longer-term chart after consolidating in the range of Rs 600-900 from December 2022 to June 2023, the price has given a sharp upside rally to make an all-time high of Rs 1,592 odd levels. During this bull run, volumes were on the rise as buyers were having full control over price. We can see that the stock has given almost 67% of returns from its lower level of Rs 600, making the stock highly overbought and can face some selling pressure at current level.

At current level it is viable to book partial profit as price can see correction to test support around Rs 1,400 odd level and can rebound from there to make new highs of Rs 1,800-2,000 level in medium- to long-term. The Stochastics Oscillator is also moving at an overbought zone, indicating a downward movement. Hence one should avoid buying at current level and can book some profit at this level.

To make a fresh entry, one should wait for price to come around Rs 1,400 and more at dips of Rs 1,300 with SL of Rs 1,150 on weekly closing basis and upside can see a level of Rs 1,800 to 2,000 in 8-10 months.

(Viral Chheda, Sr. Technical Analyst, SSJ Finance & Securities)

In the daily chart after consolidating in the range of Rs 1,140-1,300 from January to June, price has given a sharp upside rally to make an all-time high of Rs 1,650 odd levels.

Price has given almost 27% returns from its breakout level of Rs 1,300 as buyers were having upper hand over sellers. From the highs, price has given some correction making Flag Pattern and in this week with relatively high volume, price has breached the pattern and is moving at higher level indicating further upside from here.

Stock is also moving above all its major averages of 20 DMA, 50 DMA and 200 DMA, indicating bulls can lead the price for higher levels. The Stochastics Oscillator is moving in an upward trend along with an increase in volume indicating an upward movement with limited downside risk.

(Viral Chheda, Sr. Technical Analyst, SSJ Finance & Securities)

The stock retains a series of ascending tops and bottoms. After shallow price correction, it found renewed buying interest and is likely to resume the prevailing uptrend.

(Amit Trivedi,CMT, Technical Analyst - Institutional Equities, YES SECURITIES)

The weekly timeframe chart of Granules India indicates sustainable upside bounce in the last few weeks, before shifting into minor consolidation so far this week.

The stock price is currently in an upward breakout of the hurdle at Rs 310-312 levels, which is the neckline of double bottom formation. Hence, a decisive up move from here is expected to bring sharp upside momentum for the stock price. Volume has started to expand during an attempt of upside breakout and weekly 14 period RSI shows positive indication. The overall chart pattern of the stock indicates a long trading opportunity.

(Nagaraj Shetti, Technical Research Analyst, HDFC Securities)

After showing narrow range movement in the last two months, the stock price (UPL Ltd) has slipped into weakness from the highs in the last week and has witnessed a decisive downside breakout of the important support of multi-week lows and also ascending trend line at Rs 660 levels as per weekly time-frame chart. Weekly negative chart pattern like lower tops and bottoms is intact and the present weakness in the stock price is in line with new lower bottom formation, which is yet to confirm.

(Nagaraj Shetti, Technical Research Analyst, HDFC Securities)