RBL Bank, Apollo Tyres, RHI Magnesita: What should traders do with these stocks

Domestic indices were trading lower in Wednesday’s trade after rising for two straight sessions. BSE Sensex fell 176 points or 0.29 per cent to 61,119 while the NSE's Nifty50 declined 63 points or 0.35 per cent to 18,169. The weakness was led by index heavyweights such as Reliance Industries, Infosys, HDFC and TCS.

Pravesh Gour, Senior Technical Analyst at Swastika Investmart has given his trading strategies for stocks that hit 52-week highs in Tuesday’s session. Here’s what he said:

RBL Bank: Buy for target of Rs 234, Stop loss at Rs 167

The counter is in a classical uptrend, as it has been rising in a bullish channel formation for the last 7 months. The structure of the counter is very lucrative, as it is trading above its all-important moving averages with higher highs and higher lows.

On the higher time frame, it has formed a three white soldiers candlestick pattern, which has shown a bullish structure, suggesting much more potential upside in this counter. The momentum indicator RSI is trading above the 60 mark with a positive bias, whereas MACD is witnessing a centerline crossover. The Ichimoku cloud suggests that the price is trading above clouds, which now act as a support for the stocks.

On the upside, Rs 190 will act as an immediate resistance; above this, we can expect a big move till Rs 234 levels, while on the downside, Rs 167 is the major support during any correction.

Apollo Tyres: Hold for target of Rs 340, Stop loss at Rs 303
The stock is in a secular uptrend, having retested its previous breakout level of Rs 302 after reaching a new all-time high and begun a new leg of rallying towards Rs 340 levels.

On the upside, Rs 340 is a susceptible area; above this, we can expect a run-up towards 354 levels in the near term. On the downside, Rs 303 is major support during any correction. MACD (moving average convergence divergence) is supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised.

Rhi Magnesita: Buy for target of Rs 1,000-1,050, Stop loss at Rs 800

The counter is in an uptrend, having retested its previous breakout level of Rs 739 after hitting a new all-time high and begun a new leg of rallying towards 880 levels.The overall structure of the counter is very impressive, as it is trading above its all-important moving averages with higher highs and higher lows.

The pattern suggests immediate targets of Rs 1,000, with the potential to move higher in the short term to Rs 1,050 levels. On the downside, Rs 800 will act as an immediate support level. The momentum indicators are positively poised to support the current strength.

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