Trading ideas for ITC Ltd, Tata steel, Reliance communications Ltd, Ranbaxy Lab, Jaiprakash Associates Ltd and ACC Ltd

Two days before on Friday afternoon, I have been requested to look into the above mentioned stocks and post my opinion on them. Here I have noted down my views based on their fundamentals and technical analysis. I hope these analyses will help other fellow traders too.

ITC Limited (BSE:500875)- Range Trading

No proper BUY or SELL signal is generating by seeing the above chart pattern. Currently this stock is range trading from Rs.198- Rs.180. 100 Exponential moving averages (EMA (100)) has given resistance two times in short-term time period. If you have bought this stock, then it is wise to hold as long as it gets support at Rs.180 and book profit when hit resistance near Rs 200.

Tata steel (BSE: 500470) - BUY

In long term time period, Tata steel chart pattern looks bearish, but in short-term time period this looks a good buy at Rs.600. It looks like sellers have been exhausted and buyer have got interest at this psychology level. Recent buy volume is almost double of daily average volume. Price has broken to upside and closed at daily high near Rs 600 which is the highest level from past five trading sessions. If this stock won’t go further below, then it could be a good time to buy at Rs.600 with stop/loss at blow Rs 560 with target1 at Rs.650 and target2 at Rs. 700.

Reliance Communications Limited (NSE: RCOM) - Wait for Confirmation

Long term chart pattern looks bearish for RCOM and short term chart pattern does not look either buy or sell. Nearest support is seen at Rs 380. Recently price has gone up from 380 to 450/500 two times in short term time period. You could buy at Rs.400 after trend confirmation with huge upside volume for a target at Rs.450 and above with stop/loss below Rs 375. On the other hand, if stock goes down below Rs 380 with huge down side volume then sell at or near Rs.380 with stop/loss just above Rs 415 for target Rs.320

Jaiprakash Associates Limited (NSE: JPASSOCIATE) - BUY

JPASSOCIATE looks bullish in short term time period. Nearest support is at 150 and resistance at 200. Price has been trying to go up in previous trading day after being consolidated in this area from past four trading sessions. Positive divergence has been formed at the bottom of slow stochastic which indicates a new uptrend. If this stock won’t go further below, then it could be a good time to buy at Rs.164 with stop/loss just below Rs.150 for target 1 at Rs.200