Buy Arvind - Accumulation seen...

Arvind Industries is a textile based firm. The stock is 2nd highest gainers amongst the F&O stocks in the last one week showing rise of 5.5%.

Open Interest too has declined marginally on rising prices, which indicates profit booking is yet to take place. Today also, the stock was rising steadily before RBI dovish policy pulled the markets down.

Another positive indicator has been Open Interest in 85 Calls and 90 Calls which have seen strong accumulation on Friday and yesterday.

The stock can be purchased around 82.5 Rs with stop-loss can be placed at 79 and target levels of 85 Rs. and 89 Rs (ref diagram below).

Buy Century Textiles at 387 with stop loss of 375 and target levels of 415 and 430

Century Textiles has broken the previous short term high made at 376 and close the Friday at 390, which indicates a break-out.

The stock is in strong bullish momentum and likely to move further. The stock provides attractive risk to reward ratio. One may buy the stock at around 387 with stop-loss at 375 and target levels of 416 and 432.

Sell ICICI Bank around 1040-1045, target levels - 1020, 995 and stop-loss 1065

ICICI Bank rallied sharply in the beginning of September and reached the levels of 1050-1100. Since then, it has stuck in this range for about a month.

On Friday though, it has broken that range and closed at 1044. Technically it is a breach of support range and likely to further go down. We anticipate it to first take some support at around 1020 and then at around 990-995. On the upside, one may put stop-loss at 1064.

Wishing you a profitable trading!!

Buy REC Limited around 227 with stop-loss of 223 and target prices of 230 and 240

REC Limited is public sector enterprise which works in the area of rural electrification. With the announcement in the reforms in the power sector, the stock is buzzing.

It is up around 25% since September. The stock retraced from 230-235 levels twice in the last two weeks and consolidating at around 220 levels. On Friday evening though, the stock went up from 222 to 230 levels in the last one hour of trade. 

Trading volume was up by 40% and delivery volume was up by 3 times on day-to-day basis which indicates growing momentum in the stock. The stock though has a resistance at around 230 but should be breached this time, as suggested by trading volumes and delivery volumes data.

The stock can be bought at around 228 with target levels of 233 and 240. One may place the stop-loss at 223.

Happy Trading!!!