Cipla on the weekly chart has decisively broken above multiple resistances that were placed in the Rs 1,080-1,070 range since September 30. The scrip is forming a higher high-low on the daily chart 
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Cipla on the weekly chart has decisively broken above multiple resistances that were placed in the Rs 1,080-1,070 range since September 30. The scrip is forming a higher high-low on the daily chart Axis Securities in its weekly technical report suggested trading strategies for four stocks in cash and future segments. They are Tata Steel, ITC, Cipla and Ashok Leyland. The brokerage advised traders to sell January futures of Tata Steel, ITC and Ashok Leyland for solid gains ahead. It advised traders buying Cipla for 7-11 per cent return in the next 3-4 weeks. Here are Axis Securities' trading strategies for the four stocks:
Axis Securities said Cipla on the weekly chart has decisively broken above multiple resistances that were placed in the Rs 1,080-1,070 range since September 30. The stock, it said, gave a throwback till the breakout area. It formed a bullish candle at the breakout zone, indicating reversal post profit booking. The scrip is forming a higher high-low on the daily chart. This formation indicates a positive uptrend. The weekly strength indicator RSI is holding above a reading of 50 mark, indicating positive momentum. The above analysis indicates an upside towards Rs 1,185-1,230 levels. The holding period is 3-4 weeks.
Ashok Leyland on the weekly time frame has decisively broken below the “Head and Shoulder” pattern. Neckline for the same was placed at Rs 142 level. The stock is forming lower high-low on the weekly chart. This formation indicates a negative downtrend. • The daily “Bollinger band” generated a sell signal, as stock closed below the lower Bollinger Band.
The daily and weekly strength indicator RSI is in bearish mode and weekly RSI holding below its reference line which indicate negative momentum. The analysis indicates a downside towards Rs 130-122 levels. The holding period is 3 to 4 weeks.
Tata Steel Jan futures | Sell Range: Rs 105-109 | Stop loss: Rs 113 | Downside: minus 11-21%
Tata Steel has decisively broken below the “Ascending Triangle” pattern on the weekly time frame, with a strong bearish candle, indicating negative trend. It is facing a resistance at 61.8 per cent Fibonacci retracement of a fall from Rs 139-83 placed at Rs 117, forming a resistance for a short term. The weekly strength indicator RSI has crossed below its reference line, which generated a sell signal The above analysis indicates a downside towards Rs 95-85 levels. The holding period is 3 to 4 weeks.
ITC has decisively broken below the ‘range bound' consolidation pattern on the weekly time frame. The stock was consolidating in the Rs 330-360 range. Last week, it broke below the lower band of consolidation, indicating a down trend. The stock is well placed below 20-, 50- and 100-day moving averages, indicating negative momentum. The daily strength indicator RSI is in bearish mode and the weekly RSI is holding below its reference line, which indicate negative momentum. The analysis indicates an upside towards Rs 305-295 levels. The holding period is 3 to 4 weeks.
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