Hot stock tip: Tata Chemicals set to give 5 pct returns in one month, say experts
Sell Tata Chemicals at cmp (Rs 609.05) on rising of around Rs 628 and wait for the downside target of Rs 570 in the next 3-4 weeks. Place a stop loss of Rs 640.
Combined with H-1B Visa row with the US, escalating US-Iran tension and tariff war, the Indian indices have been in correction mode. As per the stock market experts, investors can earn in both bullish and bearish market through the call and put option available at the bourses. If we go by their views, Tata Chemicals is one such stock where a trader can take a put option and sell this stock either at around Rs 620/stocks taking a stop loss at Rs 640 or below Rs 600 taking a stop loss at Rs 620 per stock levels. In both cases, the target is Rs 570. Currently, the stock is trading around Rs 610/stock levels. Hence, if a trader goes with the experts' put suggestion, he or she can expect to earn around 5 per cent to 8 per cent in one month.
Speaking on the put suggestion in regard to the Tata Chemicals SEBI registered technical equity analyst Simi Bhaumik told Zee Business Online, "Currently, the stock is at around Rs 610 and has strong resistance at Rs 620 and has support at Rs 600. So, an investor an either sell the stock at Rs 620 adopting sell or rise strategy taking a stop loss at Rs 640 for the target of Rs 570 or can wait till it breaks the 600 support. If the counter breaks Rs 600 support then a jobber can sell the counter for the target of Rs 570 taking stop loss at Rs 620."
Standing in sync with Simi Bhaumik's views on Tata Chemicals Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities said, "This week’s decline could signal a possibility of a beginning of weakness from a higher top of Rs 650 (later May 19). Weekly 14 period RSI has started to turn down gradually from near 51-52 levels. This could mean a possibility of further strengthening of downside momentum in the stock price ahead. The overall negative chart pattern of TATACHEM signals a short trading opportunity." Shetti said that one may look to sell at cmp (Rs 609.05), sell on rising of around Rs 628 and wait for the downside target of Rs 570 in the next 3-4 weeks (one month). Place a stop loss of Rs 640."
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