Axis Securities highlights trading strategies for traders. Technical analysis of all the 3 stocks (Indian Railway Catering and Tourism Corporation Limited (IRCTC), Tata Power, and ITC) highlighted below will help traders to understand the technical levels for the stock. The holding period for these 3 stocks is 3 – 4 weeks. The stop losses should be kept intact while keeping the targets intact.  

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Indian Railway Catering and Tourism Corporation Limited (IRCTC) share price:

Axis Securities says that IRCTC should be bought in the range of Rs 1804 – Rs 1840, with stop loss of Rs 1735. On the weekly chart, the stock managed to bounce from an important support of Rs 1700 (previous breakout levels) indicating confidence within the bulls. Rising volumes at important support levels is indicating that accumulation is happening at lower levels. The stock is well placed above its 50 day SMA which supports bullish sentiments on a medium term time frame. The daily and weekly strength indicator stochastic has observed a positive crossover which supports rising strength. The above analysis indicates an upside of Rs 1996 – Rs 2060 levels (10% - 13% upside from current market price).

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Tata Power share price:

Axis Securities says that Tata Power should be bought in the range of Rs 101 – Rs 103, with stop loss of Rs 95. On the daily chart, the stock has strongly bounced from its earlier breakout zone of (Rs 94 –Rs 96) indicating a strong comeback of bulls. This buying was observed from its 50% Fibonacci Retracement support of 96 which also reconfirmed bullish bias. On the weekly chart, rising volumes activity indicate increased participation near the major support zone of Rs 96 – Rs 97 levels. The weekly strength indicator RSI has bounced from the 50 mark which supports rising strength as well as momentum. The above analysis indicates an upside of Rs 116 – Rs 120 levels (14%-18% upside from current market price).

ITC share price:

Axis Securities says that ITC should be bought in range of Rs 216 – Rs 220, with stop loss of Rs 210. On the weekly chart, the stock has managed to bounce from an important support of 205 indicating buying at lower levels. Sustained growth in volumes on the weekly chart, signals increased participation on breakout. On the daily chart, the stock is trending higher forming a series of Higher Tops and Higher Bottom formation signalling sustained strength. The weekly strength indicator RSI is in bullish mode and placed above the 50 mark which supports rising strength. The above analysis indicates an upside of Rs 234 – Rs 244 levels (7% - 12% upside from current market price).